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

To: Jack T. Pearson who wrote (21887)	3/14/1998 11:37:00 PM
From: ed	Read Replies (1) \| Respond to of 97611

The problem for those retailers is all box makers want to go to direct sale, not just IBM or CPQ. So, there is no game the retailers can play with !!!!Anyoneone who did not go to direct sales will end up with the highest cost , because the fat mark up of those retailers, and high inventories, those retailers will not bear the invenories for the box makers. So, during the transition period , from retail model to direct model, a dual model is the best solution. We already see the high inventory of those box makers this year, My guess is the transition has already started, the temporary high inventory is just the price those box makers has to pay temporarily for the transition, once this transition is over, then things will be much better , and DELL will feel the pain at that time.

To: Jack T. Pearson who wrote (21887)	3/15/1998 6:40:00 PM
From: van wang	Read Replies (2) \| Respond to of 97611

Jack...if CPQ or IBM went direct...CompUSA, BestBuys, J&R Computers...they will go build to order on their own brands....that will be disastrous for CPQ and others....have u ever try using DELL customer service as a retail customer...they care about the business sector...if you a retail (1 or 2 units), you have to leave a message...think about it your neighborhood computer store build to order at cheap prices (retail chain with volume)...you can get answers that day...for me, I dont care if i have a CompUSA computer as long as the components are the same and they can service better and sooner CompUSA is already doing it...they also have a booming computer repair business for retail customers the major computer catalog houses are doing it... IMO, that is one of the primary reason why the business model is for the resellers to build the machine...because sooner or later they will do it anyway...why should the people in California be the only ones to set up a warehouse and build the computer...no reason...entry and learning curve is not hard nor difficult so IMO opinion the build to order model is more forced by the large retailers than CPQ or IBM...large chains control the relationships on the retail front its clear...and on the corporate front its becoming clear you need to have enterprise computing presence (data centers) to sell desktops and servers...less so now than in the future