OnSale Inc. Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : OnSale Inc.

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Maxwell who wrote (2391)	12/7/1998 6:29:00 PM
From: James H. Irwin	Read Replies (1) of 4903

<<I recently bought a brand new monitor on Onsale for $800. The lowest price I've seen on this item is $1300. So how is Onsale making money? Is this item belong to the manufacture who is using Onsale as a distribution channel or is the item belongs to Onsale and Onsale is selling at a loss?>> As they used to say..."they'll probably make it up on volume!" Seriously, though, they are probably acting as agent...meaning they have secured a guaranteed minimum of units to offer to the public and they get a "margin" on the sale...this margin probably fluctuates based on what they feel is an appropriate price...basically the same thing a market maker does when you purchase stock from a brokerage who makes a market in a particular stock...they sell it out of inventory. And if you are a retail investor they usually mark it up above the offering by an 1/8th or 1/4...at least in the olden days when I used to be a broker. And to follow up I seriously doubt they would take a large "position" in merchandise unless it was an absolutely incredible price.... but as a disclaimer, the above is conjecture on my part. bon chance

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next