RE: UKNM: Boo positive

[Tonya Peck]

Correct about the big margins on clothing, accessories like sunglasses can 

be 300% + mark up.


I attended this week's First Tuesday event.  The speakers were Kajsa 

Leander and Ernst Malmsten, the founders of Boo.com.  They were very proud 

to announce their 40% off sale which they pointed out would only take place 

in Jan/Feb and July - 2x/year like the London High Street.  They felt that 

price sensitivity online wasn't important to their business. I don't get 

it...isn't that why most of us shop on line to get more - for less - 

quicker?


If this 40% off sale captured business from someone like Chris that might 

not have shopped there at full price then REPEAT.  Why wait till July. 

  Like the lastminute.com idea for hotels & airlines, manufacturers want to 

turn merchandise before it goes stale.


Take for example an e-fashion company like gap online (http:\\www.gap.com). 

  They send out a sale notice every 6 weeks or so to subscribers.  The sale 

may only apply to a small selection of merchandise but it gets a subscriber 

to return to the web site more frequently.  If the visitor buys a sale item 

sure the company makes a smaller margin but there is a good chance they 

will also purchase something else at full price while at the site. In the 

meantime, they are turning the goods for money.


Boo shared the day's figures. I don't remember them exactly but they were 

something like 330,000+ visitors and 1,300+ sales averaging about US$50 a 

sale.  Wonder what their visit/sale ratio is during the sale period?


Tonya


-----Original Message-----

From:	Bunder, Leslie [SMTP:

Leslie [dot] Bunderinfospaceuk [dot] com

]

Sent:	02 February 2000 10:01

To:

'uk-netmarketingchinwag [dot] com

'

Subject:	RE: UKNM: Boo positive


Margins on clothes tend to be very good, it is not uncommon to have mark 

ups

of 100% or more!  So getting a 40% discount doesn't always hurt.


Delivery on the other hand, I have no idea what the margins are, but I

suspect they tendered out the business to get the best quote and again, it

is not uncommon for delivery firms to be agressive on pricing to win the

business from their rivals.


Leslie


	>>From: 	Chris[SMTP:

chrisfeeshes [dot] freeserve [dot] co [dot] uk

]

	>>But they must be losing hand over fist on 40% off and free

delivery)


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Leslie Bunder, Project Manager, TDL InfoSpace

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 (work) or

lesliebunder [dot] com

 (home)

Web:  www.infospace.co.uk

tel: (+) 44 (0) 1252 390516  mobile: +44 (0) 7010 701967



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