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To: Sam who wrote (1480)	3/2/1999 11:08:00 PM
From: Yogi - Paul	Read Replies (1) \| Respond to of 2025

Sam, Great article! I hope Lyle is maintaining a database on all his repeat customers. Using data mining techniques, he can build a fairly accurate profile of all his customers and accurately predict what products and services they are most likely to purchase. Lyle would then have a product with near limitless value--an accurate and timely micro-marketing database. While I share your belief that Amazon is hugely (incredibly, you pick the word) over valued, I am impressed that Amazon knows my tastes in Music, literature, my general financial standing, and is about to acquire an intimate knowledge of the state of my health (Drugstore.com). Amazon isn't in the business of selling books, it's in the business of acquiring target market access. Something to ponder, Yogi

To: Sam who wrote (1480)	3/3/1999 12:01:00 PM
From: Robert Douglas	Read Replies (2) \| Respond to of 2025

Sam, Thanks for the article. I am mystified when I hear people talk about the huge profits that will come from Internet retailing. If anything etailing will produce even slimmer margins than its more traditional counterparts. More competition equals tighter margins. I don't even believe that Dell will keep anywhere near its present margins (8.2% last Q). I will go so far as to predict that Dell's quarterly margin will be the high point in the history of the company. What will Amazon earn 5 to 10 years down the road? My guess is around 1 1/2 to 2% on sales. -Robert