May 06, 2007

Annual Report Update: PC Connection

A few tidbits from the PC Connection Annual Report:
  • 89% of sales come from existing customers. This is a stunning amount, obviously helped by large business accounts.
  • 54% of sales come from small businesses of 200 to 1,000 employees, down from 59% two years ago. Large accounts now comprise 30% of sales. 16% of sales come from the public sector.
  • Notebook and PDA sales dropped from 21% of total two years ago to 17% today.
  • EBT was just 1.4% of net sales, though this is easily the best performance of the past five years. Gross margin was just 12.2% ... this is a tough business model to make money on a consistent basis.
  • Catalog circulation is just half of what it was two years ago --- and yet sales continue to increase. Catalogers --- make sure you pay close attention to this trend --- there are often serious flaws in matchback analyses that overstate catalog performance.

1 comment:

  1. Anonymous10:14 PM

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