SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : PROGRAMMER'S PARADISE (PROG)
PROG 0.146+6.5%Jun 13 5:00 PM EST

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Carl R. who wrote (702)2/15/1999 1:00:00 PM
From: D GALL  Read Replies (1) of 2383
 
Carl

I think that PROG can achieve the cost savings you mentioned only if it converts most (if not all) of the catalog sales to Internet sales. A (more likely) partial conversion probably will not justify elimination of the costs that you are envisioning.
My thinking is that the benefits to the business will come from re-deploying those resources in the Internet channel that is more productive.
The biggest benefit IMO will be in the reduction of the sale cycle time, and the improved service- that I would expect to increase sales. The Internet sales channel will bring the companies using it, closer to their customers. This will be a great opportunity to differentiate themselves based on service rather than price (price competition will probably take its toll- but should be beneficial to the stronger in the long run). IMO selling OS software is different than selling books, the technical knowledge required to do a good job is not easy to obtain, and if companies like AMZN want to expend into this market they will have to invest in their people more than they do now. The redeployment of the catalog sales force into the Internet (over time) could be a very important competitive advantage for PROG.
I hope I'm right when I say that it looks like PROG management understand that expending to the Internet channel is not optional and that their strategy is to do it with the least amount of cannibalization of existing channels as possible.

DG
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext