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<blockquote data-quote="NYCFXG" data-source="post: 3126894" data-attributes="member: 56621"><p>Everyone is missing a major part of this puzzle... It isn't always about profit. Sometimes just covering cost is worth obtaining large accounts like Amazon. Large accounts allow the business to scale differently and therefore lower their per package overhead. Example: Terminal handles 1000 packages a day and they are all done by hand. Terminal handles 25000 packages a day and uses automation. Which terminal spends more money per package to process? By scaling up, it increases the profit margin on their other accounts. That is what Amazon offers. This is all before considering the increase in value that comes from the added market share and gross income. Publicly traded companies are different animals.</p></blockquote><p></p>
[QUOTE="NYCFXG, post: 3126894, member: 56621"] Everyone is missing a major part of this puzzle... It isn't always about profit. Sometimes just covering cost is worth obtaining large accounts like Amazon. Large accounts allow the business to scale differently and therefore lower their per package overhead. Example: Terminal handles 1000 packages a day and they are all done by hand. Terminal handles 25000 packages a day and uses automation. Which terminal spends more money per package to process? By scaling up, it increases the profit margin on their other accounts. That is what Amazon offers. This is all before considering the increase in value that comes from the added market share and gross income. Publicly traded companies are different animals. [/QUOTE]
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