We must remain on top of emerging technologies because this is our bread and butter.
For networking, we need to provide better knowledge of cross-platform technologies.
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.
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.
Although the chart titled "Past Financial Performance" shows that we've had healthy growth in sales, it also indicates declining gross margin and declining profits.
The more detailed numbers in Table 2.2 include other indicators of some concern: As can be seen in the chart, the gross margin percentage has been declining steadily, and nventory turnover is getting steadily worse as well.
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.