SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Amazon.com, Inc. (AMZN) -- Ignore unavailable to you. Want to Upgrade?


To: Robert Graham who wrote (1467)2/6/1998 2:45:00 PM
From: Candle stick  Read Replies (1) | Respond to of 164684
 
>>>A bookstore like Amazon that deals in volume and good turnaround will be able to procure bigger discounts and credit arrangements.<<<

Just a note to point out that BKS and BGP both buy books with bigger discounts than AMZN....for example, BKS Did 2.7 Billion in sales last year compared to AMZN's 130 million.....that's a lot more clout for BKS in negotiating discounts......AMZN has a long way to go........;^)



To: Robert Graham who wrote (1467)2/6/1998 2:51:00 PM
From: Oeconomicus  Read Replies (1) | Respond to of 164684
 
Robert, are you suggesting that BKS' higher margins are attributable, at least in part, to defaulting on trade credit and then negotiating forgiveness of part of the debt?

They also can play the game that B. Dalton does with its
suppliers. Wait until a few million in debt is owed on their
account, and then negotiate a percentage on the dollar in
repayment terms.


Bob



To: Robert Graham who wrote (1467)2/6/1998 2:57:00 PM
From: igor  Read Replies (1) | Respond to of 164684
 
If it is part of the Amazon business plan to default on its credit, I suspect their next loan, if they can get one, will have an interest rate significantly higher than the present one.

igor