Re: what are coupons?




"Ron Hardin" <rhhardin@xxxxxxxxxxxxxx> wrote in message
news:445D25D7.5E61@xxxxxxxxxxxxxxxxx
James wrote:

Hello
Sorry if this is a really silly question.
But what exactly are 'Dell coupons'? Are they codes that give you big
discounts off Dell merchandise and if so how do they work i.e. who makes
money out of them?
Thanks.

Coupons are a way to charge a variable price, more for people willing to
pay more and less for other people.

If you charge one price for everybody, you set the price to maximize
profit.

But lower price means more sales because you attract lower price people,
but less
profit on the high price people who then wind up paying a lower price too.

You can get even higher profit if you can charge just less than what the
product is worth to the particular person you sell it to, rather than
letting
the people who really really want the product have it cheap along with the
least-attracted person.

So they make it a hassle to get the discount, including odd timing and
so forth, to pick up the low-attraction people at a low price, while
letting
the high price people buy whenever they want.

So Dell makes money on all the sales, and on the coupons therefore.

--
Ron Hardin
rhhardin@xxxxxxxxxxxxxx

On the internet, nobody knows you're a jerk.

Hi thanks for the info of how Dell profit by it.
But how do you go about using a coupon?
Is it a code that you find on the internet? Or do you need to give money to
someone to get hold of the code.
If you have a coupon how do you then practically make use of it?
Thanks.


.



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