#User Letter to C=
25-Apr-93 19:53:26
Sb: #96828-#User Letter to C=
Fm: Scott Harris 73717,1162
To: Jorge Escobar 70732,2366
>The first thing on the list would be a serious study on how the dealer base
can be expanded<
Interestingly, this is an ideal time for them to attack this, because
IBM/Compaq/Apple dealers are more open than ever before to looking at, well,
any line they can make a profit on. If Commodore can give them 20%-30% profit
margins, these dealers will look at it seriously. Within the last year, all 3
of the aforementioned big players cut dealer's margins tremendously AND started
direct-to-customer mail-order catalog selling, and dealers are frustrated. At
catalog-matching price (or list price, which is essentially the same), dealers
are typically making only in the range of 10% to 17% on most of these company's
popular products, which is not a good model for a successful retail business
(except maybe for very high volume and/or non-support environments) – and
they're competing directly against the manufacturer/supplier besides. The
trades tell us that the dealers are unhappy. Give them something they can make
money on, and you'll get their attention. This seems like an opportunity.
===Scott