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Technology Stocks : Dell Technologies Inc.

DELL 127.92

+0.4%

Dec 30 3:59 PM EST

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To: Meathead who wrote (24954)	12/12/1997 4:47:00 PM
From: jim kelley	Read Replies (2) of 176387

Meathead, The other cost which is difficult to quantify is the support and service costs associated with the subzero. We know those costs are not zero but we do not know how large they are. A 1 hour service call would eat up all the retail stores or CPQ profit on a subzero. In order to make any profit at all, it is really necessary to have no service and no significant returns. This means the product has to have a very low service and return rate. That supports your quality argument. I reason that they are not making any money on this product line. Jim Kelley

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