Junior,
This is from the last 10Q although it is identical in all of them. At least the text is:
Marketing and Sales
Quarter Ended September 30, Nine Months Ended September 30,
----------------------------------------------- ----------------------------------------------
1998 1997 % Change 1998 1997 % Change
------------ ------------ ------------ ------------ ------------ ------------
(in thousands) (in thousands)
Marketing and sales........ $ 37,517 $ 11,516 226% $ 84,522 $ 23,596 258%
Percentage of net sales.... 24.4% 30.4% 23.7% 28.9%
Marketing and sales expenses consist primarily of advertising, public relations and promotional expenditures, as well as payroll and related expenses for personnel engaged in marketing, selling and fulfillment activities. All fulfillment costs not included in cost of sales, including the cost of operating and staffing distribution centers and customer service, are included in marketing and sales. Marketing and sales expenses increased primarily due to increases in the Company's advertising and
This is on page 12 of the most recent 10Q.
Though my main point was about the so called low barrier to entry you'se guys <g> are
always talking about.
I know I was just upset about AMZN's bookkeeping. Actually, I agree with you that barriers to entry are relatively high. There are enough firms with enough resources to enter the respective markets to compete. No business is as easy as it appears from those on the outside. You pointing that out is important.
I believe many of my customers in my jewelry business believe we all just stand there and hope a customer comes in, shows them merchandise, take the money and place it in a bag. Most of the true work and difficulty is the behind the seens activities and that is true with AMZN too. In our case, it is leasing and location, proper inventorying, security day and night, training, internal security also, marketing, insurance, etc. I could type forever on this issue. Simply, it is not easy. It just looks that way from the customer's point of view.
Your point well taken:-)
Glenn |
