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P2O I'm from MO

09/29/05 10:15 AM

#62983 RE: smooth2o #62958

smooth2o,

Really? Do you have any background in distribution? I know
for a fact that a lot of components shipped to distributors
are 'on consignment' or shipped with the option to return.
They are not payed for unless there is a specific clause in
the distribution agreement that indicates a fee for holding
over a pre-determined periond. In most cases, if the product
is on the shelf for too long, the distributor has the right
to return it to the manufacturer or discount it.
A lot of distributors couldn't afford to stock the vast
amount of components in inventory if they had to pay up front
for it. In addition, most resellers (like us) have the option
to return items (usually in 30-90 days) for various reasons
including defective parts, item not as described or not fit
for intended application. In addition, many vendors offer
price protection all the way through to the reseller. We have
had credits applied for in stock product that was replaced by
newer models. In this type of situation, the product is not
returnable so the reseller will discount it to (hopefully)
breakeven as a minimum.

Regards,
Mike.