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Microcap & Penny Stocks : Bid.com International (BIDS) -- Ignore unavailable to you. Want to Upgrade?

To: W Lloyd R who wrote (7063)	1/22/1999 12:41:00 PM
From: Moez	Respond to of 37507

You're right.... I think this will rise quite a bit by the end of the day... ...moez

To: W Lloyd R who wrote (7063)	1/22/1999 12:48:00 PM
From: Crazy Canuck	Respond to of 37507

>>Can you explain how Bid.Com's business model can produce profits when it would appear they are giving everything away. Last time I checked they were operating on 3-4% Gross Margins. It's going to take some significant rebates to offset these margins.<< This message was from GoNorth Sorry for taking so long to respond, but I have been preoccupied with some family related responsibilities. I feel blessed, my wife and I sure have two great kids! There are many ways a retailer can make money. Often people only look at what they are selling the product for. Retailers can add income through such things as negotiating: Listing Allowances Coop Advertising Dollars Volume Rebates Percentage of Sales Licensing Upcharges on Shipping rates Selling their Customer lists etc. Some of these apply to Bid.com. some don't. There are also many expenses that a traditional retailer has that an on-line retailer does NOT have. By the way, my former company also had an on-line catalogue shopping feature that we offered our customers. The initial start up was rough, and many people inside the company felt that it was a black hole that we were throwing money into. There were many heated discussions on the merits of this strategy, and fortunately our management had a vision and decided to stay with it. Now it is paying off "Big Time." It has become one of the pillars of this company. A company's negotiation strength is hugely dependant upon their name recognition, market share and penetration. It also attracts other partners who want to work together on Joint Ventures. Please don't be myopic about what this company (Bid.com) is attempting to do or has already accomplished. Stop thinking about them as just an on-line auction company for a moment. They are positioning themselves so that they can grow into a world wide company - their strategic partnerships have the potential to bring them into the homes of everyone with a TV. Think about that a bit more - they are taking advantage of the changing Paradigm where P.C.'s are not needed to access the Internet. Everyone with a T.V. could conceivably be exposed to this company. Joint Ventures, revenue sharing, and patent licensing take on a whole new perspective when this happens. If I were still in the retail business, and someone provided me with an opportunity to extend my reach and market presence on that scale, then I would spend whatever I had to get there. As I have said before, market share and consolidation are the keys. Profits will come. For these reasons, yes I am interested in their next financial report, however I am waiting for the impact of what these new partnerships will bring. Yes, sure it is a risk, but I am willing to take this one