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To: Arial who wrote (506)	3/22/2000 11:57:00 AM
From: J. C. Dithers	Respond to of 717

who ISN'T playing these games? Re: SciQuest. Games ?? Wow, this requires a re-visit to the whole issue about how sellers have traditionally determined their revenues (dollar sales). Example: XYY manufacturer sells a chair to ABC wholesaler for $100. ABC sells the chair to RST retailer for $200. RST sells chair to final consumer for $250. Traditionally, the reported revenues are as follows: XYZ - $100. ABC - $200 RST - $250 This is an example of why, in our economy, total industrial sales (XYZ and ABC) always exceed total retail (RST) sales when we do our national accounting, as for gross national product. Similarly, a pentium chip from Intel keeps getting counted over and over as it is incorporated into a computer and sold and re-sold several times as it passes through the channel on its way to the ultimate consumer. Each value-added producer or middleman in the channel who temporarily takes title to the chip counts it as part of their sales. Long ago, the issue stopped being one of whether the intermediaries necessarily have physical possession of the product in question. For example, many furniture retailers acquire the title, but the goods end up being shipped directly from the manufacturer to the consumer. It is simply a matter of good business efficiency. This whole issue is being blown way out of proportion when it comes to accusing e-commerce firms of somehow "cooking the books."