Ken, Ken, Ken. We've been over this. If they don't advertise, they don't grow and probably shrink. They are not like an E*Trade where, once they have you, you aren't likely to leave. Moving your brokerage account is a pain in the a**, but you can buy a book from any bookseller.
Perhaps advertising won't grow as fast as revenues. It's possible. But with deep pocketed competitors promoting their own online efforts, you really have no idea when or if the percentage of sales spent on advertising and promotion will decline.
And remember, they now have 30,000 "associates" that they have to pay commissions to, one expanded and one all new distribution center to support (complete with employees), "product development" costs for all the new lines you think they will make you rich by selling (CDs and whatever else comes along that they think they can "leverage" their "brand" into). Oh, and since these other lines will have competition as well, even more ad dollars must be spent.
I know you bulls have heard all this before and will probably dismiss it like every other cautionary or bearish argument, but I just want to be on record so I can say I told you so to Ron later. hahaha.
Bob |
