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Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 233.95+0.3%Dec 1 3:59 PM EST
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To: Wayners who wrote (54631)5/2/1999 6:53:00 PM
From: Glenn D. Rudolph  Read Replies (1) of 164684
 

I never said just take out advertising costs. I said to take out real marketing and sales
costs. This means take out marketing and sales labor--not customer service and
distribution center labor. Cut the marketing and sales forces to the bone, zero, zippo.
60M is good on the advertising as a first cut. Now lets cut their real marketing and sales
staffs to the bone and see what you get. Now the 73M fulfillment is primarily real
marketing and sales labor. That's at least 36.5M doing real marketing and sales and not
packing boxes and answering customer phone calls. 60M advertising + 36.5M = 96.5M.
Net loss of 124M - 96.5M= 27.5M net loss maximum. However, real sales and marketing
labor is higher than 36.5M because of the "primarily" statement. So the real net loss
would have to be less than 27.5M and more like 11M in the black.

Wayne,

You have tried my patience to the end. I believe the people on this thread know I can be pretty patient but now you have become rediculous. A business cannot run and make sales without operations. If you desire to eliminate operations, then you better eliminate all revenue. The fact remains you were wrong, you did not do your homework. you are currently making up number and you made a bet that was not my idea.

I am waiting for you to explain how you are going to buy me dinner.

I have no intentions of debating obvious which is in black and white further. Particularly, in light of the fact I did my homework.

Glenn
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