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Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: Night Writer who wrote (11017)	12/11/1997 11:15:00 PM
From: hpeace	Read Replies (1) \| Respond to of 97611

Each dealer requires a certain amt. of overhead. I have maybe 50 places I can buy cpqs at in austin..that's rediculous.. cpq wants the 400 to make a lot of money and have inventory on hand when customer orders it. this is cpq's strategy from 1983 to about 1988... it's a better deal for everyone. and makes it easy to get to 2 weeks of inventory. cpq can have microage take 3 times their presnet inventory and cut the dealers and that will equal drop inventory to 2 weeks worth. I use to buy from microage channel.. but, they never had the pc's..so I changed.

To: Night Writer who wrote (11017)	12/12/1997 1:46:00 PM
From: BILL CHOW	Read Replies (2) \| Respond to of 97611

Night Writer: I believe this is where the 20/80 rule comes in. 20 percent of the channel will have 80% of the volume. If you serve these 20% well, you will increase your sales. Go look at the computer stores in your area and see if this 20/80 rule is close. Cheers

To: Night Writer who wrote (11017)	12/13/1997 9:35:00 AM
From: Douglas Perkins	Read Replies (1) \| Respond to of 97611

As I understand the reduction, it is not the elimination of the retail chain. The 4000 to 400 is the reduction in "authorized" retailers. Others can still sell compaq computers, but can not claim to the "authorized or certified". Authorized retailers are identified for their ability to provide complete solutions to business (sell, install, integrate, debug, and offer service contracts). Compaq is simply reducting the number of companies who can offer complete service solutions with the compaq name. Doug