To: wbmw who wrote (237646 ) 7/30/2007 1:06:08 PM From: economaniack Read Replies (2) | Respond to Key phrase is "reasonable stepped discounts"Intel’s Sewell has a simple response: His company doesn’t offer first-dollar rebates. “We offer a discount program,” he asserts, “which is stepped at basically 20%, 40%, 60%, 80%. So if you buy below 20%, you get no discount. If you buy 20% to 40%, you get a discount, but it applies only to the units between 20% to 40%. By the time you get up to 80% or 100%, you’re getting the highest discount. If you’re at the highest discount rate, and you were to normalize that across all units, you get a better price across the board if you buy more parts from us, but you don’t have this dramatic incentive, where you get nothing below 90%, and everything above 90%. In our view, this is a very traditional discount that scales with volume.”
