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Non-Tech : Bill Wexler's Dog Pound
REFR 1.560-2.5%Nov 7 9:30 AM EST

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To: Peter V who wrote (1367)6/15/1999 8:57:00 PM
From: BelowTheCrowd  Read Replies (1) of 10293
 
Peter,

I doubt any individual hospital would buy these units in bulk, but...

Many hospitals participate in "purchasing groups" to get better discounts.

Many distributors give "volume discounts" based on TOTAL transactions with a given customer, not just transactions in a single product. In other words, the hospital could be elgible for a discount on a single Bilitest system because of their total transactions with Ohmeda.

Bottom line is that CCSI isn't making the manufacturing profits and they aren't making the marketing/distribution profits. The remaining profit isn't likely to be much.

mg
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