Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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: Bill Harmond who wrote (31713)	12/30/1998 3:15:00 AM
From: Dwight E. Karlsen	Respond to of 164684

>The cost of stocking a book in retail is far higher than in an Amazon warehouse.< At least you admit that there is a cost for a warehouse. You're ahead of James Cramer, who it was said had a column recently where he didn't even acknowledge that they carried inventory. Sure, a retail space is more expensive, and the "fit-up" is very expensive too. But there is still a base price of land (not cheap anywhere except the boondocks, where Amazon warehouses are not located). Commercial space, even industrial space tucked away off the beaten paths, is still big $$$ (to develop). You've got incredible amounts of money going for groundwork, utilities, lighted parking lots, etc. Meanwhile, AMZN can't even get their fulfillment and/or mkting costs down enough to turn a profit. And yes, you've got a pretty expensive lease to pay monthly on industrial space. The tenant fit-up has always been the tenant's responsibility. Monthly lease plus utilities is the tenant's montly obligation, and AMZN doesn't have it any better there than the next commercial/industrial tenant.