Finally although we have a good command of desktop

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Unformatted text preview: In service and support, we offer a range of walk-in or depot service, maintenance contracts and onsite guarantees. We have not had much success selling service contracts. Our networking capabilities ...[additional specifics omitted]. In software, we sell a complete line of ... [additional specifics omitted]. In training, we offer ... [additional specifics omitted]. 3.2 Competitive Comparison The only way we can hope to differentiate well is to define the vision of the company to be an information technology ally to our clients. We will not be able to compete in any effective way with the chains using boxes or products as appliances. We need to offer a real alliance. The benefits we sell include many intangibles: confidence, reliability, knowing that somebody will be there to answer questions and help at the important times. These are complex products, products that require serious knowledge and experience to use, and our competitors sell only the products themselves. Unfortunately, we cannot sell the products at a higher price just because we offer services; the market has shown that it will not support that concept. We have to also sell the service and charge for it separately. 3.3 Sales Literature Copies of our brochure and advertisements are attached as appendices. Of course, one of our first tasks will be to change the message of our literature to make sure we are selling the company, rather than the product. 3.4 Sourcing Our costs are part of the margin squeeze. As competition on price increases, the squeeze between manufacturers’ price into channels and end-users’ ultimate buying price continues. With the hardware lines, our margins are declining steadily. We generally buy at ... Our margins are thus being squeezed from the 25% of five years ago to more like 13-15% at present. In the mainline peripherals a similar trend shows, with prices for printers and monitors declining steadily. We are also starting to see that same trend with software .... In order to hold costs down as much as possible, we concentrate our purchasing with Hauser, which offers 30-day net terms and overnight shipp...
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