Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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 : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: Dave who wrote (168108)	7/13/2002 9:51:59 AM
From: Road Walker	Respond to of 186894

Dave, The laws regarding price policy are pretty straight forward. You do have to provide a level playing field, based on volume. If HWP/CPQ buys the same volume as Dell, officially they have to be given all the same considerations as far as price, rebates, terms of sale. In practice, this sometimes becomes difficult. Where a Dell might need a two day lead time with small overnight shipments and 60 day payment term, HWP/CPQ might settle for a 30 day lead time, higher volumes per order, and 120 day payment terms. The programs are sometimes designed to match the business model of the customer. How do you cost or place an economic value on these different programs, so that the ultimate net/net prices are in balance? It's difficult. But I imagine, with Intel's high profile, they make an effort to provide a level playing field, within the different tiers of customers. If they didn't, they would be open to some pretty nasty lawsuits. John

To: Dave who wrote (168108)	7/13/2002 12:08:42 PM
From: Bill Jackson	Read Replies (1) \| Respond to of 186894

Dave, It is one thing to buy a car or two at retail, but in a volume business if one player decides to give a better price to one buyer than all the rest, well that is ilegal. Now you can make an advertising plan whereby you pay for other people's ads if they sell only your products in their catalogs. If they sell one of someone elses product, well they lose the ad revenue. Now this can be played out to keep AMD ads out of catalogs or other ads where Intel products are sold??? Is this legal? Bill