Re: UKNM: Who wants to spend £90million?

[Sam Carrington]

That e-business still needed bricks and mortar warehousing, stock,

pickers and packers, admin, support, distribution networks, technical

authors and coders, City centre premises etc etc.


Just 'cos its an e-business doesnt mean its completely ethereal!


Gary Pharo wrote:

>

> Alex

>

> All good points, but I was really questioning why a company that is

> operating *electronically* can spend this level of money.

>

> Surely the whole point of running an e-business (as the thread a couple of

> weeks ago) is to reduce your operating costs and improve the efficiency of

> the operation.

>

> As for the cost of developing the site.....my understanding is that they

> paid very little if anything for the actual hardware......which begs the

> question of how much Organic charged to develop the site?

>

> The only obvious signs of spend were the pitiful ad campaign.

>

> I can certainly see how you could spend multi-millions running an

> international business - I just fail to see how or why the same money

could

> be spent with an e-business.

>

> Rgds

> Gary

>

> > -----Original Message-----

>

> From: ownerchinwag [dot] com [ownerchinwag [dot] com]On">mailto:ownerchinwag [dot] com]On Behalf Of Alex

> > Dunne

> > Sent: 19 May 2000 14:19

>

> To: 'uk-netmarketingchinwag [dot] com'

> > Subject: RE: UKNM: So, any techys from BOO like a job?

> >

> >

> > $135mil can go pretty quickly in a year for a multi-national

> > startup. Maybe

> > your burn rate is $13mil/month because you have to:

> >

> > 1. Buy/rent machines, equipment, office space for your infrastructure

> > 2. Structure and operate fulfillment centers, even if you outsource

> > 3. Run marketing campaigns and pay fees to companies that create them

> > 4. Recruit, hire, train and pay 400 staff plus multi-national benefits

> > 5. Manage your distributed operations (including travel costs)

> > 6. Build a massive multi-lingual, e-commerce, 24X7, high-concept website

> > 7. Maybe pay more for some services 'cuz you need them, like, NOW!

> > 8. Multiply all this by n number of countries in which you

> > operate/promote/sell.

> > 9. And of course, all those prepaid DHL 'free return' slips that went

> > un-used.

> >

> > Taking a different perspective, $135mil is only a 2cent movement in

MSFT's

> > stock price.

>

> [Sam says: msg chopped...]



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