AMGV - David and Goliath of the box makers? Message Board

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Microcap & Penny Stocks : AMGV - David and Goliath of the box makers?

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To: gao seng who wrote (279)	8/4/1998 10:44:00 PM
From: JohnO	Read Replies (1) of 509

Wal-Mart has its suppliers guarantee sales of PC's in stores. Each store manager orders the PC's for their Wal-Mart store. The PC's maker delivers them and gets paid by Wal-Mart. If several months down the road a manager wants to return unsold PC's the PC maker has to accept them and credit Wal-Mart the price they paid for them. If a customer wants to return the PC to Wal-Mart the same return policy holds true. Wal-Mart has one of the most liberal return policy around. They will accept items back with a full refund for almost any reason. A computer built and not sold loses 3% of their value each month. With Wal-Mart return policy to PC makers one can lose a bundle servicing all their stores with store returns. If a store manager want to order 100 PC's he gets them. If he doesn't sell them PC maker gets them back. Wal-Mart doesn't lose under this program at all. They get credited 100% for every PC returned by them. Wal-Mart policy for a new vendor coming on board is to start them off slowly in a few stores and to slowly increase their presence in additional stores after considerable evaluation of their performance and acceptance. This arrangement with AMGV being the exclusive BTO for Wal-Mart isn't through their stores just the WWW. AMGV has eliminated the problem of old inventory by having 5 days grace period from date of sale to mailing PC unit. They have the unit made when the order arrives via WWW or phone. Plus the unit is paid for before they even begin to build PC. Also they have 30 days to pay for the inventory after it arrives. The return policy for PC's ordered through the WWW is 5 days if my memory is correct? A much better policy than in store sales for AMGV. I can see no benefit to DELL buying out AMGV. AMGV niche is the fact they offer a good quality PC for less than $999.00.

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