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From SmallDog's latest Kibbles&Bytes newsletter. The full letter should be available here shortly

I know that you may have seen Amazon's or Macwarehouse's discounted offers for Jaguar. Some customers have asked if we are going to match those rebates and discounts. The short answer is, No. But I do want to explain what is going on here so that we're all on the same page.

Amazon, Macwarehouse, and Small Dog all pay the same price for Jaguar
(around $110 for the $129 retail-priced product). So, how and why do these guys offer $50 or $30 rebates and sell the product below their cost? At first glance, one might conclude that Apple had made some sort of sweetheart deal with these larger vendors. I have been assured by Apple executives I know and trust that this is definitely not the case.

The real answer goes back to our discussion last week about email marketing. The purpose of these rebates is to mine email addresses for email marketing. The value of a fresh email address for internal use and (in some cases -- read privacy policies carefully) for sale to other marketing organizations is estimated to be somewhere between $35 and $75, depending on which reference source you consult for email marketing statistics. So, the intention of these deep discounts is not to make a profit on that product but to buy email addresses.

I really will not blame you, nor will our feelings be hurt, if you buy
Jaguar from one of these companies and take advantage of the rebates, but I did want you to know why you are seeing these offers. If you don't want your email address to be used by these companies, you may have success if you opt out of their email notices by un-checking the appropriate boxes.

Smalldog is selling it for $127.77 with a coupon for a free pint of Ben & Jerry's ice cream.

Also from the newsletter

Dawn tells me that she and Art are going to man the phones and have great specials every 17 minutes from 10:00 PM to midnight on Friday, August 23rd! Why 17 minutes, I asked? Dawn said it was her favorite number, and a prime number at that. So, in typical Small Dog low-/high-tech fashion, they are going write a new special with a special "wag" URL that will last for only 17 minutes on a whiteboard and display it on the office Dog Cam! It should be fun. I've given them the latitude to make some awesome bargains, so if you're staying up late...

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