Posted by
ryuzaki0
on from the the-borgification-of-online-sales dept.
coug_ writes "Yesterday it was CD-Now and Columbia House. Today, it's Egghead and Onsale. CNet is carrying more details.
" So, this is the fourth incarnation of Egghead-flee brick and mortar, then head online, then auctions, now merging.
A lot of Egghead's problems stem from poor inventory presentation. It's tougher to find a product at Egghead than it is at NECX for instance.
Also their surplus side dosen't have too many great deals. The system prices are higher than Intellesale, and their parts are generally not the best stuff around.
The Onsale merger might be okay - except they're going to run a risk of annoying their retailers... they'll have to be careful.
Egghead brick-and-mortar stores always had high prices. So, they decided to cut overhead and go online only. They touted avatars, and other "helpful" ideas for shopping, but missed the point: good prices.
Now that they've merged with Onsale, this might change but I doubt it. What they need to focus on is good prices. Whenever I think of buying something over the web, I hit shopper.com to find the best deal. Egghead is never in contention.
What we have hear is a merger of two mediocre companies to form a larger one. This is a step in the wrong direction.
Well the problem was that Egghead (a seattle based chain) decided to work strictly with software. Then they implemented some perphrials into their store. However their downfall was that they sold strictly computer software/accessories. They did not venture into console video games like Electronic Boutique and Software Etc.
Maybe egghead realizes what they are (not) goot at
by
dan+g
·
· Score: 2
Perhaps someone at egghead had the insight to say "look, we're not making money as a convential retail business, let's why don't we enter a ring wheere you don't have to turn a profit to be successful, e-commerce!
Did anyone else notice the mentions about how these two and some of their competitors are losing value (and fast -- 80% loss in one year, ouch)?
I hope this is a sign that the market is realizing how absolutely worthless most of these companies are. When AOL, Amazon, and the others of that lot supposedly have billions of dollars in worth but have never posted a single profit, something is seriously wrong. It's very sick when Boeing and General Electric (who make 747s and nuclear bombs) are supposedly worth less than a really crappy "ISP" and an online bookstore. I _hope_ there is a serious paradigm shift in the market soon so that this sort of inflation is curtailed before it reaches the point of October, 1929....
Re:Internet Stock Prices
by
Trepidity
·
· Score: 2
Well, I wouldn't bet on AOL going downhill anytime soon. Maybe Amazon, but not AOL. AOL has indeed made a profit several times in its long (for an internet-related company) history. It also has extremely good management, who have managed to keep up with changes in technology. Look what happened to Prodigy, CompuServe, and all the other old nationwide-BBS type systems. Only AOL made a successful transition from BBS to internet provider. Now they own WinAmp, Netscape, CompuServe, and a few other companies, so for AOL to fail, all these would have to fail, not to mention the fact that they have over 8.5 million subscribers.
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A lot of Egghead's problems stem from poor inventory presentation. It's tougher to find a product at Egghead than it is at NECX for instance.
Also their surplus side dosen't have too many great deals. The system prices are higher than Intellesale, and their parts are generally not the best stuff around.
The Onsale merger might be okay - except they're going to run a risk of annoying their retailers... they'll have to be careful.
Egghead brick-and-mortar stores always had high prices. So, they decided to cut overhead and go online only. They touted avatars, and other "helpful" ideas for shopping, but missed the point: good prices.
Now that they've merged with Onsale, this might change but I doubt it. What they need to focus on is good prices. Whenever I think of buying something over the web, I hit shopper.com to find the best deal. Egghead is never in contention.
What we have hear is a merger of two mediocre companies to form a larger one. This is a step in the wrong direction.
Perhaps someone at egghead had the insight to say "look, we're not making money as a convential retail business, let's why don't we enter a ring wheere you don't have to turn a profit to be successful, e-commerce!
Did anyone else notice the mentions about how these two and some of their competitors are losing value (and fast -- 80% loss in one year, ouch)?
I hope this is a sign that the market is realizing how absolutely worthless most of these companies are. When AOL, Amazon, and the others of that lot supposedly have billions of dollars in worth but have never posted a single profit, something is seriously wrong. It's very sick when Boeing and General Electric (who make 747s and nuclear bombs) are supposedly worth less than a really crappy "ISP" and an online bookstore. I _hope_ there is a serious paradigm shift in the market soon so that this sort of inflation is curtailed before it reaches the point of October, 1929....
Head-On
EggOnHead
Headache
HeadOnSale
EggOnSaleHead