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Technology Stocks : Egghead Computer (EGGS)

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To: Kip518 who wrote (7759)6/1/1999 10:15:00 AM
From: Anaxagoras  Read Replies (2) of 8307
 
FWIW, a mention of EGGS in TSC by new columnist Adam Lashinsky.
thestreet.com
He is talking about the familiar e-tailing concept of disintermediation. The following paragraphs let you into one person's thinking when it came to making an e-tail purchase.
Anaxagoras

<<I bought a snazzy Palm V last week from Egghead.com (EGGS:Nasdaq) for $362.79 plus $14.99 for shipping. For weeks Buy.com has been advertising a cheaper price, currently $342.95, but the gizmos are marked "pre/special order," so I clicked quickly to Egghead, which promises it has the product in stock.
Now comes the Sunday paper with a pullout ad from Circuit City (CC:NYSE) advertising the Palm V for $449. California's 8.25% tax would be more than double what I'm paying Egghead to deliver to my home in two business days.

Can Egghead make money with a sticker price 19% below Circuit City's? Can Buy.com make a go of it by not stocking products for which it advertises low, low prices?

Eliminating what pre-politically-correct corporate America called the "middleman" is a force that can't be stopped. How exactly it all ends up when the dis- and re-intermediating is done is anybody's guess. >>

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