Any comments after reading the following post? In order for CPU to survive in long term, CPU might have to become a "display" store: no inventory, but a sample to display in stores. Charge commission and service as the major source of profit! CPU stores can save store spaces and put higher margin items in stores. Why CC and Best Buy can make higher profits? If they can sell computers, why CPU cannot sell TV and VCR?
Message 8724794
To: +Jing Qian (2490)
From: +Doug Fowler
Tuesday, Apr 6 1999 3:01AM
You know, I stopped buying computer hardware (and
most software) at CompUSA a year ago.
I use CompUSA to touch and feel the merchandise,
then go to PC Connection or a computer auction to
save several hundred dollars.
CompUSA never offers the best prices, and with the
sales tax, I can always save at least 10 percent and
often more.
I'm sure I am not alone, which is one of the reasons
CompUSA has been reeling over the past year.
For CompUSA to survive long-term, they need to
charge vendors for displaying their wares, and allow
for the orders to be placed online directly to the
manufacturer, where CompUSA will get a
commission for placing the order.
The Internet will change the way many of these
traditional businesses operate - those who don't
change will fail eventually.
eBay has a chance to be a huge beneficiary of this
shift. Will they be smart enough to make the right
moves? |
