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Technology Stocks : Amazon.com, Inc. (AMZN)

AMZN 229.55

+0.2%

Dec 5 9:30 AM EST

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To: hdl who wrote (118414)	2/23/2001 11:35:01 AM
From: Skeeter Bug	Read Replies (1) of 164684

hdl, normally, i just say "no" to drugs, but that stuff you got is so i good i want some! ;-) IF what you say is true then amzn would charge more for their products, make a gazilion dollars and wait to make more $$$ as demand grows exponentially. but, alas, they don't. why? they KNOW they have to be a low cost seller or they lose share in a big way - even if the internet is expanding. why? so much growth in the net and i have to sell below all up cost to get it? AND my growth rate is still drastically SLOWING? what folks like you FAIL to understand is that the vast majority of profits are made through consumer ignorance. you pay more b/c you don't know you can pay less. the internet reduces ignorance. amazon.com is worth little more than 10 ascii characters if they don't have the lowest price b/c i can check 30 retailers daily to see if their price is the lowest. wrt lowest cost producer - first of all they don't produce. the resell. they have interest on $2 billion in debt that they need to cover before they make a dime. they buy product at prices higher than best buy sells them to you or i. add to these items that amzn is now under credit scrutiny and may have to pay cod for their goods - they lose the float - another higher cost of doing business. amzn is toast. just like napster. 50 million users when it is low cost. raise the cost, 47 million customers go away over night. BASIC economics, my friend. the new economy has not suspended tried and true BASIC economics.

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