CompuServe Messages

Some people sure live in a dream world. Even at the prices CBM charges, their profit is MUCH lower than any of the major IBM clone makers or Apple. As a dealer, I can tell you that the retail profit is so low that we no longer consider ourselves as Amiga dealers that have a huge (over 850 titles) s/w selection. Our dealership is now a s/w retailer that will get (note: NOT STOCK) an Amiga. Why? The profit margin sucks! Within the past 60 days, one dealer folded and another closed their retail front and switched to mail order only. At least two others are in serious trouble. No, CBM prices are VERY fair. They may lower the 500 to buy more market penetration, but nothing is wrong with the present price structure. The problem lies with their marketing approach – it's too amateurish, simplistic, and unfocused. They also need to support their dealer network by eliminating mail order discount houses as did Apple, and support a more realistic dealer profit margin. I don't know of any dealer that is going to sell, for long, a $1000 item at 10% profit, and then provide the kind of customer support that is needed. Yet that is exactly what is being forced on the Amiga dealers. Looking back on the first paragraph, of course the "we" is our dealership – Computer Quest in Seattle. I don't pretend to speak for anyone else.