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Non-Tech : CompUSA (CPU) -- Ignore unavailable to you. Want to Upgrade?

To: TH who wrote (3014)	10/25/1999 2:43:00 PM
From: AJ Berger	Read Replies (1) \| Respond to of 3187

You ask a good question about PC pricing basically, we have an unusual market dynamic in the PC industry that hurts resellers, but helps manufacturers and end users emmensely. resellers are terrified of losing hard fought market share, and risk lower sales figures should higher prices divert customers to their competitors. You also have consumers who have been conditioned to expect lower pricing over time as new products emerge. A consumer waiting for the P3-700 to come out so that the P3-500 will be cheaper is not to be disappointed by higher prices just because chips are harder to get. That guy will simply not buy. Resellers will rather take in on the chin with lower margins than lose to another B&M, or even worse, the Net. This is why everyone in the channel who does not add value, or provide services will be sufferring this coming Xmas. High end guys like Dell & Compaq can offset the low end thinning margins with expensive high end products, But CPU won't have that luxury as their sales are mostly consumer(low) not corporate(high) driven.