Re: does anyone have list price of 1.2 gig drive handy?

[plexxus@inforamp.net (John Allman)]

Robert Dewar said:
>well I assume that the retailer has a good $400-$500 markup on a $1800
>drive, and all they do is to order it and hand it to you!
>
>
You are suggesting a markup in the range of 22 - 28%.
As an IBM VAR I can assure you that these margins do not exist.
The competition amongst resellers, superstores and IBM Direct certainly
precludes this.

A dealer is typically making 5-8% on a TP, and possibly 10 - 12% on
peripherals. This equates to possibly $200.00.

For my maybe $200.00, I would have counselled the client as to his options,
sent a technician to install the drive, and probably copied the clients
software from the old drive to the new drive. Or at least, formatted the
drive and installed the operating system, to be sure that everything is
right.  I would also intercede on their behalf if there were any subsequent
service issues.  And by the way, I would pay my supplier in 30 days, and
wait 60 days to get paid.  

Oh yeh, I may have absorbed the costs of shipping, bad debts, etc., etc. And
then there is the issue of getting inventory.......


John Allman
Plexxus Technologies Inc.
Markham (Toronto), Ontario