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To: rudedog who wrote (38331)	4/19/1998 11:34:00 AM
From: Chuzzlewit	Read Replies (1) \| Respond to of 176387

Rudedog, I think your statement: [Compaq's]"new model should allow the end price to float more freely and save CPQ some 'insurance money', but puts more risk on the reseller..." pretty much summarizes the conundrum facing Compaq. One of the keys in retailing is shelf space, which implies that you would like to get your complete line into every retailer carrying your brand. But if a particular model isn't successful the retailer faces considerable financial risk. Elimination of price protection will likely result in a reduction in shelf space. How this will effect unit sales is difficult to predict. TTFN, CTC