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To: gc who wrote (45483)5/30/1998 5:45:00 PM
From: jim kelley  Read Replies (2) | Respond to of 176387
 
What is the source of facts for your statement that subzero has good margins for CPQ? It is not at all clear that that is the case.

Last time I looked, CPQ actually was buying the subzero from another manufacturing company and having them dropped shipped to the channel. Thus, there are 3 to 4 middlemen involved with handling this product and each one of them is trying to make a profit. This is hardly an cost efficient product.




To: gc who wrote (45483)5/30/1998 7:15:00 PM
From: Jack T. Pearson  Read Replies (1) | Respond to of 176387
 
If the margin in low cost PCs is good even after you pay the distributor and retailer overhead and profit, think how good it will be if you don't have to pay distributor and retailer overhead and profit!


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