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 Bear Thread -- Ignore unavailable to you. Want to Upgrade?

To: Marq Spencer who wrote (896)	5/27/1998 12:15:00 PM
From: jjs_ynot	Read Replies (2) \| Respond to of 2578

Regarding Store Names: There is a row of stores on Route 202 going into Delaware from Pa. that has: Computer City, Circuit City, COMPUSA, Best Buy and some local electronic and appliance dealers all pushing PCs and competing on price.

To: Marq Spencer who wrote (896)	5/27/1998 12:31:00 PM
From: jim kelley	Respond to of 2578

CPQ's distribution costs are between 10-12% higher than DELL's costs due to inventory costs, channel profit and retail store profit. This has been extensively analyzed on the DELL and CPQ threads over the last 6 months. So if their prices were identical with DELL for the same configuration then they could go underwater by 2-4 % per system. This assumes that the parts cost and assembly costs are the same. Also, many of the CPQ people also support the statement that the retail stores are not selling CPQ's below the CPQ web site. This is an interesting topic. I will ask a CPQ cognoscenti what is up.

To: Marq Spencer who wrote (896)	5/27/1998 12:49:00 PM
From: AlanH	Read Replies (1) \| Respond to of 2578

Anyone else from the SF Bay Area care to comment The pricing you have mentioned is commensurate with what I have observed throughout Silicon Valley -- at major national chains. Mr Kelly is spreading FUD. You are correct is stating that Compaq is sensitive to its channel, and avoids cannibalizing via web. Many consumers take great pride in saving $100-400, and will risk stepping out of the house (for a 15-20 minute drive) in order to tell such a story. For folks that are immobile or in remote locations, Compaq's price is still superior [see below URL] and includes free shipping. compaq.com BTW, the "below cost" argument is nonsense regarding PII 300-400Mhz offerings.