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Technology Stocks : All About Sun Microsystems

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To: E_K_S who wrote (41068)	2/8/2001 4:30:46 PM
From: Robert	Read Replies (1) of 64865

Management thinks the new program should be positive but... ... this is always a tautology, no management in their right mind would enact a program that they know would be detrimental to the bottom line. It is actually very hard to tell how effective such programs are until after the fact. As an observer, we don't know if the increase in MDF is offset or in addition to planned promotions, so we don't know how much more revenue is required to break even on increased promotional costs. The only positive I see is the termination of discounts for Sun's sales people. By having them compete on the same playing field as the channel forces them to be competitive and reassures the channel that Sun is not undercutting them.

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