[comp.sys.amiga] $12M ASCII Group/Commodore deal

papa@pollux.usc.edu (Marco Papa) (07/13/88)

Considering the recent thread on good/bad Commodore dealers, and the amount
of the ASCII Group/CBM deal ($ 12 million), I am enclosing a slightly
edited version of the article from Computer Software News, July 11, 1988
that gives some interesting details.  Hang on to your Commodore stock :-)

Enjoy.


			DEAL WORTH $12M

		ASCII picks up Commodore Amiga
		------------------------------

Washington, D. C. -- The ASCII Group will be offering its 205 member stores
Commodore's Amiga line through special agreement with the vendor.

	The Commodore deal, said ASCII Group chairman Alan Weinberger, is 
valued at $12 million (at dealer's cost) over the next 12 months. The 
agreement calls for the offering of "special discounts" to members as well as 
to 41 DOS Computer Centers, whose franchisor operates Computer Technologies, 
ASCII's "control warehouse", Weinberger said. Commodore officials were 
unavailable for comment at press time.

	Industry observers noted, however, that the Commodore/ASCII Group 
arrangement is part of Commodore's effort to expand its dealer base with
higher-end dealers.  The ASCII Group and the DOS network, combined, include 
multi-store chains and individual stores specializing in niche markets--the 
higher-end dealers Commodore has been seeking.

	According to Weinberger, the Commodore arrangement provides ASCII 
Group members with free shipping of Amigas nationwide, immediate product
availability and, "it opens the door to UNIX for them."  Furthermore,
because of the large commitment the ASCII Group has made to Commodore, the
discounts on the Amiga to ASCII Group members will be "slightly better than 
standard dealer margins," Weinberger said, declining to disclose those
discounts and denying it was 43 percent, according to one published report.

	In exchange for the slightly better discounts, the ASCII Group will
provide some value-added services to the dealer on behalf of Commodore.  These
value-added services include having off-staff experts for the Amiga line and
eventually for UNIX, he noted.

	Initially, Weinberger expects as many as 50 ASCII Group members to 
add the Amiga to their product mix over the next six-to-nine months. He also
expects "a growing number of *Apple* stores joining ASCII to pick up the 
line."  He bases these expectations on the phone requests from these potential
members for the Amiga.

[ end of quote ]

-- Marco Papa 'Doc'
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