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Date:      Thu, 1 Aug 1996 18:21:36 -0400
From:      dennis@etinc.com (Dennis)
To:        "Rodney W. Grimes" <rgrimes@GndRsh.aac.dev.com>
Cc:        freebsd-isp@freebsd.org
Subject:   Re: Question about Cisco 2503i price
Message-ID:  <199608012221.SAA24849@etinc.com>

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R. Grimes writes...

>> whats the definition of wholesale these days?
>
>Purchases from manufacturer or distributor and sold to resellers/VAR's/etc.
>
>Most distributors will not even talk to you unless your in the business
>of reselling and can produce a state resellers license.  Large corporations
>tend to bend these rules pretty badly, they are not in the business of
>reselling computers, but because the do other forms of ``reselling'' they
>slip it past the wholesaler, and often even lie on the account application.

Filing a "blanket" is not a lie....but if you buy from out of state you
don't pay
sales tax anyway. But in the big picture, sales tax isnt the issue at all.

As you probably know its illegal in the US to sell non-FCC systems.....the
reason
that you must certify that you are a "reseller" is that if you're an end
user  you cant
buy parts and build systems legally. The "wholesalers"  really couldn't give
a hoot 
if you're reselling it or not.  Its kind of a joke, but many parts resellers
aren't willing 
to take the chance. As for sales tax, if you file the form then its your
problem, 
not theirs. They dont care at all.

>
>Manufactures won't deal with you unless you can promise them millions of
>dollars in annual purchases (ASUS won't sell me motherboards unless I buy 500
>of them/month, Miro won't sell me video cards unless I buy them 520 at
>a time, etc, etc.)

Who cares, when many bonafide resellers are working on <5% margins, Q1?

>> I pay the same for 1 as I pay for  50. (maybe I get a dollar).
>> there is no "wholesale" in the PC parts business if you know where to go.
>
>That statement is incorrect.  I'll tell you where to go, go try to buy
>motherboards from ASUS, or CPU chips from Intel/Wyle/Hamilton Avenet,
>they won't even deal with you unless you want to buy 500 to 1000 of them.
>THATS wholesale buying.
[...]
>If your not getting price breaks at qty 50, your not negotiating prices
>very well.  On the KNE50T for example, qty one cost for me would be $55.00,
>if I buy 20 of them it would be $47.00, a wee bit more than your ``dollar''.
>If I where reselling these to you the price delta would be similiar, I pass
>on my volume purchase savings to my clients just like everyone else does.

You got it backwards Rod. I tell them that if i don't get the Q50 price on
Q1 I'm 
going elsewhere. You're the one whos the lousy negotiator :-)

db

PS: didnt you say (about an hour ago) that a Q20 price for the KNE50T is $55? 
Now its $47?

We get (SMC clone) PCI combo cards for $54. Q1, $53. for Q3 or more.
Resellers only! :-)




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