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Technology Stocks : OnSale Inc.

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To: Chucky who wrote (1573)11/9/1998 9:06:00 PM
From: CoffeePot  Read Replies (1) of 4903
 
ONSL also derives a portion of it's revenues from agent sales, where it acts as a middle man between manufacturer and buyer,, I think this represents approx 8% of sales. From what I understand the company prefers to be able to control what it buys by purchasing directly from the manufacturer/retailer as opposed to acting solely as a agent,, possibly because margins are higher this way. Regardless I don't see companies like EBAY producing the kind of revenues ONSl already has achieved,, ONSl will probably do more business last Q (57mm up from 24mm) than EBAY will do all year......where EBAY might have a margin advantage ONSl will easily make up for it in volume.....I just don't think too many consumers will find the idea of buying someone else's used equipment that appealing........a refurbished product with a manufacturers warranty is a totally different matter. IMO
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