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Strategies & Market Trends : Mu Gamma Lambda -- Ignore unavailable to you. Want to Upgrade?

To: Alan Smithee who wrote (5741)	9/7/2001 12:21:20 AM
From: HG	Read Replies (1) \| Respond to of 10077

Electronics is a fast moving market. Sometimes, and I'm not sure if BBY operations are carried out the way I am explaining, but often the retail outlet gets a 30, 45, maybe even 60 day creditline from the appliance manufacturers. It is in the interest of the retailer to get the appliances out of the door as fast as possible....even if they sell say at a small profit of $5, the actual cash they retain earns interest for 30, 45 or 60 days, as per their creditline with the manufacturer. Compounding the interest on monthly sales this way, the interest contributes to the profit margins on almost every sale which is paid for upfront. I suppose some of it is passed on to the consumer in terms of interest free loans which are actually special low rate loans negotiated and further subsidized by the retailer...... I am not sure, but does the offer extend to the items on sale as well ? I would think it must extend only for the items offered at regular price, which gain means the consumer pays anyway...and the difference between the sale price and the actual price goes towards funding the interest... Like someone once told me, if you get something for free, it just means you haven't got the bill yet !