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To: Skeeter Bug who wrote (143274)	6/23/2002 10:10:40 AM
From: Glenn D. Rudolph	Read Replies (2) \| Respond to of 164684

SB, You were frequently talking about how the Internet will squeeze retail margins. In fact, you were talking about this years ago. You are correct in that all retail of which I am familiar has had an average of 500 basis point drop in margins. In hopes of making up for that, retailers are squeezing manufacturers. Manufacturers are trying to make for that by lowering the cost of manufacturing. Some of this is coming from production improvements via different forms of technology. However, a much greater share is coming from a decrease in the quality of the items being manufactured. It is actually becoming difficult to find well-manufactured products anymore. I am referring to bread and butter staples such as pots and pans, toasters, fly swatters, paper towels, candles, telephones, bird feeders, etc. I believe we are going to see a whining consumer in the future about how their consumables are not holding up. In the end, the cause of the problem was/is the consumer.