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To: Ilaine who wrote (38287)11/17/2000 7:25:13 AM
From: re3  Respond to of 436258
 
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To: Ilaine who wrote (38287)11/17/2000 2:15:44 PM
From: Ken98  Read Replies (1) | Respond to of 436258
 
CB, I think you hit the nail on the head about the misperceptions about the internet:

<<A good business model can be enhanced by the net, but you can't create one using the net.>>

However, my jaded, cynical side says that 99% of the internet companies were in business for one reason, and one reason only - to sell stock. As Heinz would say, malinvestment in its purest form. And when you look at garden.com from that perspective, several of your questions are answered.

On the positive side, however, many small businesses will reap tremendous benefits (not dot.com rich, but substantial enhancements to their current business models) from the internet. Your apple example is excellent. My favorite ones are the small wineries. In the normal distribution channel, the winery gets around 25 cents on the retail dollar, with 35 cents going to the wholesaler (a real license to steal) and 40 cents going to the retailer. When the winery can sell direct to the consumer over the internet, he can sell it for 75 cents on the dollar - the winery has tripled its margin and the consumer has saved 25%.

BTW, I like to garden too. It must be something about looking at verbose documents and talking to pompous blowhards all day that makes plants seem all the more appealing.

Have a good weekend, Ken.