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

To: ed who wrote (21885)	3/14/1998 11:20:00 PM
From: Jack T. Pearson	Read Replies (2) \| Respond to of 97611

What can distributors and retailers do if IBM and CPQ go direct? The next time you are in a retail computer store, ask the owner what he would do if Compaq started selling direct at lower prices. For one thing they can start advertising and promoting HP. Every dollar they spend promoting IBM and CPQ will just deliver customers to lower cost IBM and CPQ direct sales. The only way IBM and CPQ would be able to avoid this is if they priced their direct sales in line with their retail prices. Then they would be the highest price direct sales company.

To: ed who wrote (21885)	3/15/1998 9:29:00 PM
From: Jason W. France	Read Replies (1) \| Respond to of 97611

Jack and Ed, this is some very interesting conversation that I think should be flushed out. Remember that when we talk about distribution we should specify to which mkt segment RETAIL to consumers I.e. COMPUSA.. CPQ shouldnt be in that biz (just kidding, couldn't resist, another conversation for another time) RESELLER TO Corp customers i.e. vanstar/entex/microage etc... this is where CPQ's biggest problems stem from Jason