ROUND ROCK, Texas: The world’s No 1 computer maker Dell Inc. announced it is simplifying its pricing structure following customer complaints that its rebate system is confusing and complex. The company intends to cut rebates and other promotional offers.

Dell said the process will not have any real impact on the prices but it will improve customer relations.

The computer maker, which sells directly to customers via the internet and phone, said it expected to reduce the number of promotions for U.S. consumers and small businesses by about 70 per cent per product line, while promotions of single product will come down by 80 per cent. The measure will be put in force in about 18 months, starting August with Inspiron laptops and Dell televisions.

Dell’s revenue growth has slowed in recent times and the company has been facing stiff competition from No 2 Hewlett-Packard Co. There have been several complaints about its after-sales services. The company had earlier announced plans to cut down prices and to improve its customer service spending some $100 million.

Outlining the simplification process, Dell’s senior vice president of home and business group Ro Parra said the cutbacks will not impact the net prices of the products. Instead, it will make the entire buying process a lot simpler.

The company said it will concentrate on paperless rebates for its promotions.

Parra admitted the various promotional programs had become increasingly complex and cumbersome for customers trying to get the best deals. “On any given quarter, we have had 30, 40, 50 promotions on any given product, so it really became very confusing and difficult for our customers to understand and shop,” he said.

The simplification, he said is solely based on customer feedback and has nothing to do with price competition. Nearly 80 per cent of the company’s customers redeem their rebates, he said.

Dell shares dropped 68 cents to close at $21.70 Thursday on the Nasdaq Stock Market.