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Technology Stocks : OnSale Inc. -- Ignore unavailable to you. Want to Upgrade?

To: j_b who wrote (1358)	7/22/1998 2:45:00 PM
From: Mo Chips	Read Replies (1) \| Respond to of 4903

<<Notice that advertising spending seems to be decreasing rapidly>> You are on to something here. I tried to point out the fact that SG&A does not have to increase at the same rate as in the past. That's the magic of scalability and combined with REAL revenue growth this is the reason these internet companies are so hot. Stagger won't admit it. I've also noticed fewer onsales ads, could it be that they are reaching critical mass in their customer base? Maybe their repeat purchase rate is so good, they don't need to spend as much to acquire more customers. I'm sure they have learned A LOT about the online auction customer and they probably know more than anyone else. As I have pointed out already, the real key to determining the potential for this business lies in the customer, how much it costs to acquire them, how many are repeat buyers, what is the buying frequency, what is the average order value, etc. Without an understanding of these important customer metrics, we are all guessing as to the potential. So to say it will or will not be successful without a discussion of this is pure specualtion. Mo