[AT] OT Question OT

Cecil E Monson cmonson at hvc.rr.com
Fri Apr 2 16:08:24 PST 2004


	This is very interesting to me, Steve. Lucille and I have been
in local Gateway stores several times and both times we left without
buying. They may have thought they had selling computers all figured
out but they did not impress us. We have since bought 7 or 8 computers
from Best Buy.

	My sister in Minnesota, whose husband is a farmer and watches
what they spend, just bought an e-machine in January and likes it a lot.
I know people seem to run down e-machines but from what I have heard,
people like them and the price that goes with them.

	My personal opinion is that Gateway spent too much money on
advertising that did not pay off in returns. Anyone buying advertising
should always track the returns to be sure it is paying off.

Cecil

> Gateway bought out E-machines and then turned around and put the folks
> from E-Machines in charge, since they had actually turned a profit and
> Gateway hasn't been out of the red for 3 years. ALL Gateway/E machines
> stores will be closed by April 9,2004. They plan on going to a web/phone
> sales model with a few third party retailers (Wal-Mart, Best Buy)
> carrying their machines. Any machine purchased prior to April 1 2004
> will be covered within its warranty BUT it will have to be sent in or
> pay extra for a tech to repair it since the stores will no longer be
> there. Also ALL machines purchased after April 1 2004 will come with one
> year warranties that will cover parts ONLY, no labor. That warranty can
> be extended for extra cost. Phone tech support will be free for the
> length of the warranty, after that it will be a pay per use. Gateway
> will be eliminating a minimum of 2500 jobs as well as relocating the
> corporate headquarters (again) this time to orange county to be closer
> to the new Board members homes. The approx. 500 people at the current HQ
> have been offered jobs in the new HQ but it will mean relocating.  For a
> real eye opener Emachines has been outperforming Gateway the entire time
> they have been around and turning a profit, with 139 people TOTAL,
> Gateway has close to 3400 people and only made a profit in the first 2
> years.
> 
> Steve Williams
> Near Cooperstown NY


-- 
The nicest thing about telling the truth is you never have to wonder
what you said.

Cecil E Monson
Lucille Hand-Monson
Mountainville, New York   Just a little east of the North Pole

Allis Chalmers tractors and equipment

Free advice




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