Just on the distributor model. I found DW’s comments about this quite illuminating. First, the Board has mixed views on the model; two, it gives a “sugar hit” of sales but then can plateau; three, he’s not concerned about a reduced unit revenue (e.g., roughly, $450 versus $900) because the gross margin is still very high; and four, for him the making goal is increasing volumes any which way.
I imagine that with the right CEO appointment David might get his way and the direct sales approach will replace distributors over time.
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