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To: Mohan Marette who wrote (25631)	12/18/1997 6:47:00 PM
From: jim kelley	Read Replies (1) \| Respond to of 176387

Mohan, I believe that CPQ is stuffing the channel and the retail stores. But this time it will not hurt them and Q4 results will look very good because they won't be accepting returns. They did this last year. In addition, they are going to cut the channel and retail stores in the new year from 4000 to 500 authorized dealersr. Combine these facts, with the fact that return priviledges have been reuced and you get a one time bonanza for CPQ at the expense of the channel. "unauthorized dealers" will have to buy from the distributors which will put them at a 4-5% disadvantage. I have referred to this as " STUFF THEM & STAB THEM." policy. CPQ wants to kill off a large part of the channel. This will become very noticeable in Q1 and Q2. There will be many screams of protest comming out of the channel. Jim Kelley