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Non-Tech : PERFUMANIA.COM . . PRFM . . .FOR LONGS ONLY -- Ignore unavailable to you. Want to Upgrade?

To: Maryann M who wrote (1142)	1/30/1999 1:54:00 PM
From: Mark[ox5]	Read Replies (1) \| Respond to of 2489

Maryann you said the fragrance you buy costs $60 at Macy's, $75 at ALU, and $36 at PRFM. You also posted you don't know why Perfumania is not making money. Well from a 2 minute analysis from the price figures you gave me, it looks like they are trying to do the AMZN high volume, low profit margin trick. That trick doesnt work well when you have a ton of brick and morter building you need to pay rent and building expenses on, but it works pretty damn well on the internet where you have 1 virtual superstore! (just ask AMZN) Also, in my research it looks like PRFM made the same mistake many companies do when they have initial sucess... they expand at a rate they cannot profit at... overexpansion is a deadly problem for many companies who see good profits when at a low number of stores. I believe Eddie Bauer had a similar problem after they had blockbuster success about 3-5 years ago... and now due to overexpansion they have to cut jobs and close stores. Mark