Dell sticks it to Harvey Norman

Direct computer vendor Dell Computer is waging a campaign to lure consumers away from the stores of retail giant Harvey Norman.

Dubbed the "Harvey Norman Price Challenge", advertisements have been placed in major metropolitan newspapers promising that Dell will not only match the price of any PC at Harvey Norman with similar specifications to a Dell model, but beat it by $200.

"If you can find a lower advertised price for a Compaq, Packard Bell or Hewlett-Packard desktop from Harvey Norman, with the same specifications and configuration as a Dimension desktop currently available and quoted by Dell, we'll better the price by $200," the advertisement reads.

Dell spokesperson Rob Small said Harvey Norman is its biggest competitor in the consumer market. While Dell clearly has price position against the major brands, Small said, it struggles to compete with retailers that offer first-time buyers to see and feel the machine before making a purchase.

"In our opinion, with the pace at which technology advances, anything sitting in a shop is rotting," Small said. "This price challenge shows our total confidence in our competitive edge over any retailer."

The price challenge was supposed to expire at the end of the month, but the marketing folks at Dell are enjoying it so much, they are extending the challenge indefinitely.

As well as the price promotion, Dell has re-introduced its 30-day money back guarantee that it dropped two years ago citing that very few buyers ever used it.

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