Found another interesting article regarding how ONSALE atCost site prices compare to the competition.
smartmoney.com
Like I said before I can't wait until atCost site starts advertising and selling items other than computers. Just think of the traffic this site will generate if they start selling items like TV's, VCR's, stereos, camcorders, appliances, cell phones, sporting goods, etc…. Lets not forget the additional revenues generated due to advertising.
“Lots of $10 fees, low cost = profit.”
ONSALE can afford to give away products at cost all day long because they are not holding any inventory. If a business were to carry inventory and sell products for at cost then it would make any investor a little leery. However, with the atCost model of not carrying and holding inventory and making a small transaction fee of $10 seems like a great idea. Given time ONSALE should prevail with this concept and start showing a profit. If I were a competitor of ONSALE I think I'd be running a little scared, wouldn't you?
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