OTOT Re Cpq
>> while CPQ has said PC sales were great this quarter, RETAILERS were reporting sales below expectations. Retailers said the new Imac wasn't meeting sales forecasts, according to Greenburg. If this is true, it could mean that CPQ's new direct sales strategy is beginning to work. On Friday, Merrill said CPQ looked to be "on track" and the stock had a big day.>>>
The 7000 Radio Shack stores (Tandy) cannot be happy with the deal made with CPQ. Nov. sales down 19% because the CPQ machines (I think they sell two models)are priced just under $1000. With slim margins, they could not compete with lower priced computers sold at Best Buy and Circuit City type stores.
Did CPQ unload some surplus inventory on RS?? I don't know.
But E.P. will have steady job keeping resellers happy. IMO a
store can no longer put fixed price items on the shelf and hope some
un-clued person sees it and makes an impulse purchase. The newspapers had full page ads on RS, did not seem to help.
How do they get out of this mess.?? Price the next models
at say $799 at all RS stores, then have the competition reduce
prices to $599??. Let each RS store set their own prices, format their own advertising literature( expensive) and then
have people calling each store to find the lowest price??
Ahhhhhhhhhhhhhhhhhhaaa. I know, we'll just copy Dell and sell direct. Whooooooops, I forgot the stores.
Poor Radio Shack, I don't even buy batteries there anymore,
get 'em at Home Depot.
SES
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