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Strategies & Market Trends : Bill Wexler's Profits of DOOM -- Ignore unavailable to you. Want to Upgrade?

To: peter michaelson who wrote (3619)	11/4/1998 9:55:00 PM
From: Phil(bullrider)	Respond to of 4634

peter, You are sure a faster typist than I am. That was a quick response. You are of course correct when you say that the location manager should be replaced when discovered, but sometimes locations do well despite the sorry immediate managers (or despite themselves) and therefore are difficult sometimes to pinpoint. I also agree with your point that upper level management needs to be more in tune to the locations under their control, but with all of the corporate downsizings and the elimination of middle level management, the only thing that truly matters to the managers that are left are results. Sales that result in profits. (Except internuts, they only want "hits", not earnings) I guess we get to the point that, "Are profits more important than a well run business, or not"? I would say not, but WTFDIK? Only time will tell which route CPU will follow. I'll be watching. Have fun, Phil

To: peter michaelson who wrote (3619)	11/5/1998 4:49:00 PM
From: BelowTheCrowd	Respond to of 4634

Peter, That depends on what management's goals are. Given the realities of technology retailing, it is unlikely that CPU is even TRYING to provide "service with a smile". More likely, they're focusing on inventory turns and best pricing. Historically that is NOT a bad model for a retail business with razor-thin margins. One only needs to look at the major photo and electronics retailers in New York. Zero service. Often zero ability to really see and hold the product. Crowded stores if you visit in person and rapid pushes to get done if you call in for mail-order. Yet all-in-all, they are VERY successful and move more inventory than anybody else in the business anywhere, selling for pennies of margin and making it up on the inventory turns. CPU is obviously not trying to be THAT bad, but they've also obviously made the decision not to hire really experienced people and drive up their costs. In my neighborhood, hiring real PC experts to work on the floor would run them upwards of $50K per year in salary and other perks. Not affordable in the current pricing environment. mg