Bid.com International (BIDS) Message Board

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Microcap & Penny Stocks : Bid.com International (BIDS)

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To: Ruyi who wrote (23854)	4/21/1999 7:06:00 PM
From: Cameron	Read Replies (2) of 37507

bid.com is a quite different operation than other consignment based auction sites. In reality it is simply an on-line retailer which happens to use the auction mechanism as its point of difference. Now... let's say you are a national packaged goods firm (several of which I have worked for). You decide to run a promotion where you offer $.50 off each 2 Litre bottle of your product for the month of July. Where does the expense go... marketing expenses... of course!! Not cost of goods. This method of accounting makes bid.com comparable to all other retail operations. I have never actually thought about how I would account for a commission based auction operation. If you are selling on commission and decide to subsidize the price then you are effectively reducing your commissions so the expense would become a cost of goods - or really a net reduction to commission revenue. Makes perfect sense to me. Key measure is discounted expected earnings per share - which is below both the marketing or COGS line. When you say things like >>The damage keeps coming. Accounting questions ??? all you do is reduce your own credibility. Why not just post the article - which is interesting by the way! Sheesh!!!

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