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Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 234.37+0.2%Dec 2 3:59 PM EST
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To: Glenn D. Rudolph who wrote (54617)5/2/1999 6:43:00 PM
From: Wayners  Read Replies (1) of 164684
 
I never said just take out advertising costs. I said to take out real marketing and sales costs. This means take out marketing and sales labor--not customer service and distribution center labor. Cut the marketing and sales forces to the bone, zero, zippo. 60M is good on the advertising as a first cut. Now lets cut their real marketing and sales staffs to the bone and see what you get. Now the 73M fulfillment is primarily real marketing and sales labor. That's at least 36.5M doing real marketing and sales and not packing boxes and answering customer phone calls. 60M advertising + 36.5M = 96.5M. Net loss of 124M - 96.5M= 27.5M net loss maximum. However, real sales and marketing labor is higher than 36.5M because of the "primarily" statement. So the real net loss would have to be less than 27.5M and more like 11M in the black.

The $133M is primarily paragrpah (a).

>
Marketing and sales expenses consist of:

(a) Advertising, promotional and public relations expenditures, as well as payroll and related expenses for personnel engaged in marketing, selling and fulfillment activities.

PLUS...

(b) 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.

However the 10K is clear, the marketing and sales expenses of $133M primarily consists of paragraph (a).

Even using your logic, you are saying that paragrpah (a) is $60M and that paragraph (b) is $73M. How is $60M greater than $73M?
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