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Subject: Re: UKNM: Who wants to spend 90million?
From: Sam Carrington
Date: Mon, 22 May 2000 11:40:34 +0100

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: owneratchinwag [dot] com [owneratchinwag [dot] com]On">mailto:owneratchinwag [dot] com]On Behalf Of Alex
> > Dunne
> > Sent: 19 May 2000 14:19
> > To: 'uk-netmarketingatchinwag [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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Replies
  RE: UKNM: Who wants to spend 90million?, Gary Pharo

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