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
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.
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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