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Technology Stocks : Dell Technologies Inc.

DELL 127.98

-1.0%

10:55 AM EST

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To: Geoff Nunn who wrote (48266)	6/20/1998 1:00:00 PM
From: rudedog	Read Replies (1) of 176387

Geoff - No CPQ managers get rewarded for units shipped. You are losing sight of the fact that 'the channel', companies like Mirasel, Vanstar, Ingram, Compuadd are CPQ's Customers. That's who they sell to. that's who writes the check to CPQ for the HW. These companies are not subsidiaries of CPQ, in fact none of them get a majority of their sales from CPQ systems. CPQ does not control them. Even so, in order to stamp out the bad business practices which had developed over many years as a result of the linkage between CPQ and 'the channel', CPQ changed the compensation for its sales force from real sales (ie the sales CPQ gets paid for) to 'sales out' (the sales CPQ's customers get paid for) except for that small percentage of sales directly to a customer (currently about 10% of CPQ's sales) in which case there is no difference between 'sales in' and 'sales out'.

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