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 : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Chuzzlewit who wrote (32430)	3/5/1998 9:43:00 PM
From: Geoff Nunn	Read Replies (2) \| Respond to of 176387

Paul, it's unclear to me how a boxmaker like CPQ can "stuff" the channel and book bogus sales. If the channel gets stuffed unintentionally due to overly optimistic forecasting of sales, that's one thing. But if it occurs through design, wouldn't it require the acquiescence of a reluctant end-retailer? Why would a company like, say, Comp USA agree to purchase more inventory than it needs? Is in-channel product "bought" on consignment rather than actually purchased? And if it is purchased, what is the big deal if CPQ chooses to boost sales by offering special price inducements toward the end of the quarter. Price reductions are an everyday occurrence. Why should those timed toward the end of the period be viewed as anything special, not business as usual? Thanks. Regards, Geoff