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To: rudedog who wrote (81235)	11/18/1998 10:48:00 PM
From: BGR	Respond to of 176387

Rudedog, <Net benefit to the VAR - a 15% improvement in his cost structure and the ability to leverage his staff for more business with no capital investment.> What is the net cost to CPQ? -Apratim.

To: rudedog who wrote (81235)	11/18/1998 10:54:00 PM
From: Mohan Marette	Read Replies (1) \| Respond to of 176387

But the Catch Rude the Catch. '... The catch for both the reseller and the distributor is that there are is no price protection nor are there any stock adjustments allowed on the inventory.They are completely responsible for the inventory risk.We suspect that distributors will take a conservative approach to inventory positions until there is better visibility for how these initiatives shake out....'

To: rudedog who wrote (81235)	11/18/1998 11:37:00 PM
From: Chuzzlewit	Read Replies (1) \| Respond to of 176387

Very nice Rudy. (I'm being sarcastic!) Remember, these guys are distributors, and have warehouses and shipping bays and trucks and all sorts of overhead aimed at distributing computers. That means they are geared to physically handling merchandise. Now explain to me why these guys don't become white box makers. They can still sell leases and use their various contacts. That's what I'd do if I were them. Why? because if you become a sales rep for a company that intends to sell direct you are participating in your own murder, and I think they are smart enough to see that. The advantage they had with Compaq was a nationally recognized brand. The advantage they have with Compaq's plan is an illusion. TTFN, CTC