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Microcap & Penny Stocks : Tech Squared (TSQD)- Internet Commerce -- Ignore unavailable to you. Want to Upgrade?


To: kcgiant who wrote (473)6/29/1998 5:38:00 PM
From: M. Frank Greiffenstein  Read Replies (1) | Respond to of 2752
 
Yet another guy who doesn't get it...

Thanks for the link, kc. But I am starting to wonder about some of these technical writers like this Gaskins guy in Red Herring.

The article was OK, but there were a few whoppers in there. For example, DR's commerce server was called "too costly." Huh??? That's a strange thing to say, because DR doesn't charge a dime. At least not so far. It charges a percentage of sales. Second, costly relative to what standard? Does Chernitz mean the % that DR takes? He certainly can't mean the costs of starting a software ocmpany with marketing, producting, packaging, warehousing, etc. DR is CHEAP for a small software company that wants quick sales without having to hassle with a buyer at Best Buy.

Another whopper is that Chernitz makes the "low barriers to entry" argument. Basically, anybody with servers can set up the same business. Wrong again. DR offers a SEAMLESS system. That takes program writing.

He does however make a good point about competition. There will be plenty, and MSFT will get a big chunk. But DR has a head start, and I think avoiding opening up its own storefront is a plus. AMZN doesn't print the damn books, I fail to see how DR's business model is any different.

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