Wednesday, March 26, 2008

Acer ConTempT wiThouT Large Buyers

Large buyers will lock out vendors with whom they have had bad experience regardless of whether there are value-added services like specialized vendor software, on site maintenance, & etc. Another thing is that payment for the bulk purchases from large buyers are not immediate. It could take at least 3 months to receive payment for products already supplied to them. Without the liquidity benefit, vendors will have to make do elsewhere, perhaps less on R&D, downsize, & etc.

Furthermore, profitability is affected by large buyers who want the best deal below vendor costs. HP, being a mix seller; selling to large buyers & consumers alike, seems to be balancing things out nicely on the number one spot. Acer specializes to only the consumer market & its affordable low prices of products help it take the second spot. Acer seems to not bother with large buyers, as stated above, the risks far outweighs the benefits. Dell is third.

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