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

AMZN 226.76

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To: Victor Lazlo who wrote (128181)	7/12/2001 12:20:14 AM
From: Glenn D. Rudolph	Read Replies (2) of 164684

Glenn just some good natured ribbing... So how's it going? Are you preparing the bus for the year-end buying season? Any insights how it will be? Victor, It is going "OK." We have really added a lot of revenue stream from on-line sales in both our on-line store and through Ebay. The gross margins are a bit low for my liking and it is worse once the costs going to Ebay are taken. We are fighing to get any kind of an increase in the stores this year. This year reminds me a lot of 1990. The economy particularly in the industrial sector is weak enough to keep the consumer nervous about their job. That is assuming they still have one. I am not expect a strong holiday season. I am expecting a revenue increase for my operation but that will come from the on-line initiatives. It is incremental revenue. I know as a fact I could not survive as an on-line pure play. The time to list everything, answer customer questions, fulfillment, etc. makes it a very difficult retail environment. It work s reasonbly well when we are going through our slower period which is now and my employees can do that work without additional hours. That will not be case during the holiday season. I bought a lot of gold this year. Not gold stocks but actual metal finished and unfinished. I suspect the consumer will buy lower priced products meaning gold items over platinum and high end diamonds this holiday season. Retailing is really become a lower margin business during hte last few years. This is something that Skeeter has been harping on and he is correct. The technology does reduce margins due to the consumer's ability to know competitive pricing. On the other hand, technology is making operations more efficient to reduce some costs. There is going to be a lot of retailing consolidation in 2002 in my opinion. I already see it in my industry with four independants in the Erie market having closed this year. The chains continue on in the large regional malls but they are taking on debt. One large firm that seemed to have lost their footing for a while was Penneys. It took the more difficult competitive climate for them to re-vamp their marketing and they are an excellent case study of how a proper inventory and marking mix can affect both revenue and the bottom line. I am personally am varying from the norm in that in a weak economy most firms will cut advertising. We increased it this year. I will be able to tell you at th end of the year if that was wise. It feels like a bad move now due to the cost. The difference is we do not blend in on the radio with a lot of competition with our advertisements. Will that keep us on people's mind this holiday season? What is correct? Consumer spending decreases. Does a retailer cut costs and advertising or does one stay the course? By the way, we just finished and opened our online gold and platinum store. There is a large link to it on the front of our home page at: davidjewelers.com I would love to have feedback from anyone that wants to take to the time and visit that department. I havge more time invested in it than I care to admit or even think about. We carry 45,000 gold items and they are all on-line now. This was not a sales pitch but just a request for opinions. Negative ones are fine. That is how we improve.

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