donkeyman,
He was referring to things like employee salaries, owning the buildings (think of how many K-Marts, Walmarts, etc. there are in North America), paying utilities on those buildings, buying the shelves and display cases, etc in those buildings, cleaning those buildings, paving the parking lots outside those buildings, etc, etc....
When you sell over the internet, you just have to have the products to sell... nothing fancy... you don't even need trained sales staff, etc....
You might need a warehouse, and a few employees to get the orders off of the computer and ship out the products they sell... hence it costs about $0.75 per product using the Internet, and $12 per product using the "old" system...
Chad |