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Technology Stocks : Compaq

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To: Nicholas who wrote (22142)3/16/1998 9:11:00 PM
From: Mike Gordon  Read Replies (1) of 97611
 
<Staples, Office Max, and Sears are other outlets either likely considering, or already ramping up, their own house brand efforts,>

Nicholas. Thanks for the article. IMHO, most of these retailers need to think hard about reducing CPQ shelf space. First, is there more profit in the sale of 3 CPQ or one house brand? Second, house brands are not going to leave the store without a little one on one selling. Staples and Office Max are only two of many stores where salesmen don't sell on commission. Sears does through commission and a PM program, at least the last time I visited Sears. In any case, my point is that a sale of a store brands will take additional human resource which many stores will not afford. CPQ and other name brands are able to reduce price to meet the challenge.

Mike Gordon
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