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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 that feels personal.We are also under pressure to improve our understanding of the direct-connect Internet and related communications.
In service and support, we offer a range of walk-in or depot service, maintenance contracts, and on-site guarantees.
We haven't had much success in selling service contracts. (add relevant information) The only way we can hope to differentiate effectively is to brand the vision of the company as a trusted information technology ally to our clients.
Copies of our brochure and advertisements are attached as appendices.
Of course, one of our first tasks will be to change the messaging of our literature to make sure we are selling the company, rather than the product.
We are also starting to see that same trend with software...(add relevant information) To hold costs down as much as possible, we concentrate our purchasing with Hauser, which offers 30-day net terms and overnight shipping from the warehouse in Dayton.
We need to continue to make sure our volume gives us negotiating strength.
Our margins are declining steadily for our hardware lines. (add relevant information) Our margins are thus being squeezed from 25% from five years ago to closer to 13 to 15% at present.
A similar trend shows for our main-line peripherals, with prices for printers and monitors declining steadily.
Unfortunately, we cannot sell the products at a higher price simply because we offer services; the market has shown that it will not support that concept.
We must also sell the service and charge for it separately.