>I disagree. ONSL SHOULD brag about the increasing number of bids, >because this is a very relevant statistic.
It is a tactic that ONSALE management uses, and, I must say, very successfully, to inflate the stock price.
Assume that there is one sale per four bids (very far from the truth,
anyone who participates in ONSL knows this, but let me assume that).
So there is 250000 bids, let me round it up to 300000 bids, because
"there are still two more weeks to go".
Further, assume that the average price is $150, as you claimed.
A short quiz: How much is the commission fee for a sale of $150?
Another short quiz: how much is the total commission fees that ONSALE
can generate in the quarter ended March 31 ?
Answer to the first quiz: $3.5 (=4% of $25 + 2% of $125).
Answer to the second quiz: $1,050,000 (300000 x $3.5).
Finally, how much is the total fee for one year?
Answer: 12.6 millions.
This is the result. Take into account that the actual results
is much less (do your homework). Do you really believe that the sales/bids ratio is 1/4, folk?? Do you really believe that this is a big business? next AOL?
Let me repeat, that the number of companies like ONSALE grow
very fast, because this type of business is easy to copy and does
not require big investments (ONSALE has no real estate, no warehouses), and all they compete for a limited, very limited,
number of sources of discounted refurbished and sometimes
defective products, and for a limited customer base ((o:
William |
