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Technology Stocks : Amazon.com, Inc. (AMZN) -- Ignore unavailable to you. Want to Upgrade?

To: hdl who wrote (118414)	2/23/2001 10:54:54 AM
From: 10K a day	Respond to of 164684

i want numbers. i just want numbers. can you give me numbers.

To: hdl who wrote (118414)	2/23/2001 10:55:42 AM
From: 10K a day	Read Replies (2) \| Respond to of 164684

is your name henry. i want numbers. i just want numbers. can you give me numbers.

To: hdl who wrote (118414)	2/23/2001 11:35:01 AM
From: Skeeter Bug	Read Replies (1) \| Respond to of 164684

hdl, normally, i just say "no" to drugs, but that stuff you got is so i good i want some! ;-) IF what you say is true then amzn would charge more for their products, make a gazilion dollars and wait to make more $$$ as demand grows exponentially. but, alas, they don't. why? they KNOW they have to be a low cost seller or they lose share in a big way - even if the internet is expanding. why? so much growth in the net and i have to sell below all up cost to get it? AND my growth rate is still drastically SLOWING? what folks like you FAIL to understand is that the vast majority of profits are made through consumer ignorance. you pay more b/c you don't know you can pay less. the internet reduces ignorance. amazon.com is worth little more than 10 ascii characters if they don't have the lowest price b/c i can check 30 retailers daily to see if their price is the lowest. wrt lowest cost producer - first of all they don't produce. the resell. they have interest on $2 billion in debt that they need to cover before they make a dime. they buy product at prices higher than best buy sells them to you or i. add to these items that amzn is now under credit scrutiny and may have to pay cod for their goods - they lose the float - another higher cost of doing business. amzn is toast. just like napster. 50 million users when it is low cost. raise the cost, 47 million customers go away over night. BASIC economics, my friend. the new economy has not suspended tried and true BASIC economics.

To: hdl who wrote (118414)	2/23/2001 12:15:34 PM
From: Reilly Diefenbach	Read Replies (2) \| Respond to of 164684

<< the net will continue to expand exponetially. people will buy $billions more over the web. amzn will grow share. it will sell $billions and sales will grow very rapidly. people will buy thru amzn because it will provide the best price. it will be able to do so because it will be the low cost producer. >> Amazon produces nothing. Dell Computer is a low cost producer. They produce PCs, a commodity, at a cost that is lower than any of their competitors. They add value by taking in a truckload of components on one side of a building and spit out finished computers from the other side of the building a few hours later and nothing ever sits idle on a shelf. (No inventory) They maximize their profit by using a direct sales model, thereby avoiding the economic frictional losses that come from selling through the retail channel. They sell tens of millions of dollars of computers every day over the internet, and they have a model with which the internet is (I believe) their lowest cost way of selling. Since PCs are a commodity, most customers don't feel they have to see the product, to "try it out" before buying. Amazon does nothing to add value to that half-ton barbecue grill for which Glenn gave us the link the other day. Heaven knows how long the ones they have in their inventory have been there. Amazon bought it from the manufacturer or a wholesaler and is trying to sell it at some sort of retail price. Add two shipping costs to the price as opposed to only one for your brick-and-mortar retailer. Amazon can't do that and make a profit because most customers aren't going to buy a grill they can't play with first.