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Technology Stocks : Dell Technologies Inc.

DELL 133.20

+5.7%

Nov 26 3:59 PM EST

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To: jhg_in_kc who wrote (60341)	8/23/1998 4:42:00 PM
From: Chuzzlewit	Read Replies (1) of 176387

jhg, I'm no gentleman. I'm a pussycat. Nevertheless, I will pass on whatever feline knowledge I have. Technically speaking, a "channel" is the path that a company uses to get its product into the hands of the ultimate consumer. In Dell's case there is a direct channel, meaning that there are no intermediate buyers that resell product. Wholesalers, jobbers and retailers are all examples of channel intermediates. Stuffing the channel refers to asking resellers to take possession of inventory on a recourse basis. That is, if the product does not sell through and spoils (as in the case of some foods for supermarkets), or becomes obsolete (as in the case of computers) it is returned to the manufacturer for a full credit. Obviously, the use of resellers with recourse creates the opportunity for manufacturers to recognize bogus sales. In the case of Compaq, the company uses retailers, VARs and wholesalers for its indirect distribution channels. TTFN, CTC

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