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

To: H James Morris who wrote (10590)	7/16/1998 10:27:00 AM
From: IMPRISTlNE	Read Replies (1) \| Respond to of 164684

In my opinion, paying a few bucks more per sold book (and gaining all the advantages mentioned above) is a much better deal than getting a discount on a book that's going to sit on the shelves in some store or warehouse. I can't prove it by numbers, but I can by example (look at Dell's business model). OVERHEAD OVERHEAD OVERHEAD..GEEZE I HATE OVERHEAD...(Sarcastic GRIN for Glen)..and don't confuse me with a FRIGGIN BEANCOUNTER,,,, MAN!!! Using FRIGGIN..California Welfare State as an Example..: Friggin Unemployment insurance was 1.5-3.4 percent of gross wages Friggin State Compensation insurance was 8-12 percent (depending on industry...now there is your scam, glen) Friggin FICA 7.51 percent by employer Friggin MEDICAL/DENTAL insurance ??? percent Friggin 8 percent sales tax in Sacramento County... I say...pay that Marketing Bonus Expense for that internal Marketing...and save all the Friggin BLAH Blah blah...dARE i SAY THE t-wORD..... ....tear this apart..Glen Baby...I am no BEANYcounter BABY... GOD BLESS AMERICA...

To: H James Morris who wrote (10590)	7/17/1998 7:48:00 AM
From: Glenn D. Rudolph	Respond to of 164684

In my opinion, paying a few bucks more per sold book (and gaining all the advantages mentioned above) is a much better deal than getting a discount on a book that's going to sit on the shelves in some store or warehouse. I can't prove it by numbers, but I can by example (look at Dell's business model). H, Eight percent is not a few bucks more in a business that has a gross margin aroung 25%. It is a lot. If Amazon lives to see the day of a billion dollars per year sales, the books at BKS for the same number of dollars sold cost them $750 million. The books would cost Amazon $810 million. Thatis a measly $60 million more. That is a lot of payroll at close to minimum wage, etc. Now let's go to $2 billion in sales and then $5 billion. Do not forget that Amazon still has fulfillment cost, wharehouse costs, etc. I have read the couch and feel he may not be as good of an accountant as necessary for retail firms. Let's look at this another way. Eight percent of a 25% gross margin business is 32 percent of the gross margin. Look at the income statements of BKS and BGP and you will see that rent, payroll, inventory, etc. is about 32% of their gross margins. Just something to think about. Glenn PS Every driver by and passer by for mall stores is a free advertisement for BKS and BGP. This explains why advertising was not very important to them.