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To: freeus who wrote (75921)	10/31/1998 2:07:00 AM
From: Don Martini	Read Replies (2) \| Respond to of 176387

Compaq Direct: How to enrage your customers: CPQ's customers are thousands of retailers who stock, sell and advertise their boxes, train their clerks, service complaints etc. Right next to Compaqs in these outlets you find Acer, HP, Packard Bell and white boxes. Across the street and in the next block are competitors galore, which making the retail market a low-margin dogfight. Great News! A new dog is coming to town, big, mean mastiff more powerful than any retailer. Top dog is your SUPPLIER, and he's going after your biggest prospects, will steal your customers in a heartbeat ... And since his reps can't carry the full line around with them they'll probably send them to your store to take the time of your salespeople to learn what to buy, but you'll never get the order. What do you do to survive? Emphasize another line. When customers come for CPQ you persuasively explain the superiority of XYZ, exaggerate the weakness of Compaq so the factory won't be able to sell them either, because the factory is your enemy! On a small scale I had such an experience: My company was the largest distributor for Kent industrial cleaning equipment in 8 states. We were our rep's best account, sold single orders for 120 machines to Coca Cola, 60 to Western Electric, advertised Kent in national magazines. Kent was our only equipment line, we sold it all, repeatedly won cruises, vacations, etc. etc. etc. Then some beancounter decided Kent should get more representation in Atlanta, so they opened two of my competitors. Got big opening orders. The dealers didn't know the equipment, sold other lines too and within 2 years both dropped Kent. I dropped them instantaneously. What does CPQ tell it's customers when it takes their customers? "Honey, I found a new girlfriend. I'm bringing her home for dinner!" DRM