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Microcap & Penny Stocks : Bid.com International (BIDS)
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To: GoNorth who wrote (11469)3/13/1999 8:45:00 AM
From: Colin  Read Replies (3) of 37507
 
GoNorth..

Do you know what the margin was in there first year of operation?

This would be a useful comparison. It is my understanding that young companies undergo something called economies of scale. The way I understand it is that, you can't go out and start your own business and be competitive immediately because start up cost will cut into your margins. As your business becomes refined and the need for capital investment is reduced, margins grow.

As business grows, sales grow. As sales grow, user cost is reduced and marginal return is increased. Margins are further increased.

Colin
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