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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Knighty Tin who wrote (57020)	4/22/1999 6:04:00 PM
From: Eggolas Moria	Read Replies (1) \| Respond to of 132070

Gateway is looking for a 3% to 5% decline in AUPs for 2Q99. Gross margins did fall sequentially. I don't have enough details to answer your implied question, but it's a good one.

To: Knighty Tin who wrote (57020)	4/22/1999 6:13:00 PM
From: Ed Beers	Read Replies (2) \| Respond to of 132070

MB, Have been to one of their stores and looked at their prices? It is obvious how they get there margins. It is less clear how they get their customers.

To: Knighty Tin who wrote (57020)	4/22/1999 8:35:00 PM
From: gbh	Read Replies (2) \| Respond to of 132070

I have raised this question many times over the past year, but how do you open all those stores and have higher gross margins? Is it because the direct model is so inefficient? Mike, not sure if you are aware, but the stores don't stock anything. No inventory, nada, zilch. Just a means so you can go in and touch and feel the latest models of desktops and notebooks. You can order right there, and have it delivered to the store or your home about a week later. The personnel know everything about their products, unlike the lamers at Best Buy and CompUsa. Actually not a bad idea, IMO, but I'm sure you will disagree <g>. Gary