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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Mohan Marette who wrote (117007)	4/13/1999 1:02:00 PM
From: edamo	Read Replies (1) \| Respond to of 176387

mo...re: "josef" gerstner........"big red" large capital goods are always sold at or below actually manufacturing cost....the money is made on the back end, with service and parts...and made many times over...markups on "oem parts" are in the 200-1000% range....service charge out rates are +$100 per hour and per diem...once you've penetrated you are locked in, provided the client is satisfied with your initial offering and execution....and the real coup is when your client has by default "standardized" on your product...any additions or modifications are a license to steal... you can see it in a small way...take auto retailing...very small margins on high volume unit....much made up in the service department...most dealerships couldn't survive without a strong service and parts department... it is a bit like communism....or a "culture" as dell refers too...all works fine...providing the proletariat is fed.....and kept happy...