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To: Victor Lazlo who wrote (130488)	8/24/2001 12:47:47 AM
From: Glenn D. Rudolph	Read Replies (1) \| Respond to of 164684

Seriously, are you making profit online? It seemed to me you had said that it was a lot more work and profits were not yet coming, but that was before all this volume if i recall right... Our on-line sales now are quite profitable. I attribute this to being able to fully utilize resources such as personnel during the typically slower months. It is similar to Christmas selling season during the summer. Basically, expenses are fixed for now and gross profit has increased a lot based on a year over year comparison. The problem that comes to mind is when the holidays are really here and all resources are utilized for in store selling. The on-line sales would no longer be "subsidized" by the fixed resources. This would require additional personnel and thus a variable expense. I have tried to crunch the numbers on this but do not have enough true data to determine the results. I will know at the end of this season. And please post us all a reminder when that Jewelers Circular Keystone article hits the newstands! I sure will. They are published on-line too.