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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Chuzzlewit who wrote (23817)	12/1/1997 11:39:00 PM
From: Meathead	Respond to of 176387

Actually, I've heard Dell plays a game of straddling the fence on sales vs. profit margins. There have been numerous occasions where they were able to drop a system price by say, $300. However, that would severely undercut the competition who would likely be weeks away from being able to reduce by that amount. Major undercuts or competetive imbalances like that can lead to order/factory lines overload, backlogs and ultimately, dissatisfied customers. Dell is adamant on managing the balance between profitability and growth. Sometimes what they do in these situations is to cut by half, $150, pocket additional profit while increasing sales at a more sustainable rate. This is a daily/weekly issue they manage on any given product during it's lifecycle. Quite a pickle aint it?? MEATHEAD