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August 23, 1988

THE IBM US DEALER INCENTIVE PLAN FOR THE PS/2 A MISTAKE

By CBR Staff Writer

A chastened IBM is having to admit to an awful lot of mistakes these days, and the latest is its US dealer incentive plan for the Personal System/2 that was introduced on January 1 and should have run the full year: it offered dealers credits and bonuses for meeting stringent sales targets, but some dealers used the credits to discount their inventory, driving down street prices of the PS/2s and enraging other dealers who wanted to use the credits to bolster wafer-thin profit margins; the programme will now terminate on September 30.

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