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To: Paul Engel who wrote (28814)2/17/2001 8:10:42 PM
From: Bill JacksonRead Replies (3) of 275872
 
Paul, I am not sure if Dell grows at all these days. Epheremal dot.cons like Dell seem to have trouble once others copy the same idea. Dell never had any intermediaries, the others needed to be whacked upside the head a few times and of them GTW seems to be the best learner. GTW still has these dumb retail outlets that do nothing but kill it's mailorder sales to many large states by the Sales tax rate. yet GTW feels they are correct? Well if they do find a way to make sales/use tax readily collectible on shipped in goods they Dell will feel this and GTW will seem prescient.

With the proliferation of state agreements on sales tax this may come sooner than many think.

By this I mean there are now a large number of bilateral information sharing agreements between abutting states to share sales tax data so that each can contact the buyer and ask them to pay a 'use tax' at the same rate as the sales tax on the data that their friendly internet vendor was forced to cough up to their own state sales tax auditors who then granted access to the abutting state under their agreement.
This has already survived court challange on privacy etc.
So if sales tax gets paid on out of state buys as well as local buys then a touchy-feely GTW store will have an advantage over Dell in immediacy as well as saved freight costs.

IBM/CPQ are still saddled with relic intermediaries and seem unable/unwilling to drop them....fear I expect if behind this as they are afraid to stand naked like Dell doe.

Bill
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