SEC Filings Section 16 Filings Only
 
PFSWEB INC filed this 8-K on 11/15/2006.
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OPERATOR: Thank you. Once again, if you would like to ask pose a question, please press star then the number one on your telephone keypad.
Thank you. Our next question is a follow-up coming from David Soetebier, of J.M. Dutton. Please go ahead.
DAVID SOETEBIER: On the eCOST. Has eCOST added any manufacturers or lost any manufacturers this year? And could you quantify who’s the most important? I think Hewlett was running about 30 percent. And maybe what some of the others are doing.
MARK C. LAYTON: Yes, the HP relationship’s clearly our biggest relationship in eCOST. Manufacturers do come and go, David, as the course of business. Sometimes lines within manufacturers come and go. So I would – I’m not going to get into the game of, you know, being out here disclosing or talking about every manufacturer relationship that we add or not. But we haven’t had a huge focus this year on adding new manufacturers, except through the virtual warehouse relationships that we’ve spoke of. The four new ones we added this quarter gave us access to hundreds of new supplier lines that we would not have had in the past. So we are definitely adding suppliers. And I think you’ll see an even greater focus on that in the future. Recognize that, you know, HP is clearly important and our direct refurb relationships that we have with a number of manufacturers are, you know, the key focal point that creates this differentiation that I’ve described to Adam out there. And then once we gain that sale, we can then sell add-on products that relate to that initial product that allows us to boost margin and overall revenue on a sale itself. So that’s the business model that we’re trying to – trying to execute.
DAVID SOETEBIER: Great. Thank you.
OPERATOR: Thank you. Our next question – I’m sorry, that person has removed themselves from the queue. Once again, ladies and gentlemen, if you would like to pose a question, please press star then the number one on your telephone keypads at this time.
And that’s star then the number one on your telephone keypads if you would like to pose a question.
Thank you, gentlemen. There appear to be no further questions at this time.
MARK C. LAYTON: Just a – I’ll follow-up a little bit more on Adam’s question here and then you can poll one more time in just a second. But there was a question about how we’re going to attract more customers out there that (INAUDIBLE) added completely to. You know, the online part of the ad business, we cut way back on the spending of that as I talked about in the – in the numbers that we released related to our ad spend on this year. The cost per clicks are going up significantly and they went up again during the holiday period out there. I think that’s a challenging point for all Web commerce retailers who sell technology products that are commodity priced the way we are. I would not be surprised to see some changes in the industry going forward in terms of how those models work, because it’s quite difficult to today to put together a financial model that says, oh, here’s the way you ought to do it and that’s going to make financial sense for people who are selling products that have, you know, relative low gross margin characteristics to them like we are. That has led us into looking at more of a blend between offline advertising and our online ad spend. And, Adam, one of the other ways you’re going to see us, I think you’re going to see us get more aggressive in terms of some traditional advertising techniques and viral (ph) advertising techniques to try to drive an enhanced customer base and rely more on e-mail marketing than we – even than we have in the past. So just a little bit more flavor on your question earlier.
So, Eduardo, if you’d poll one more time for questions.
OPERATOR: Thank you. Once again, ladies and gentlemen, if you would like to pose a question, please press star then the number one on your touch-tone telephone keypads at this time.
Thank you. Our next question comes from Chris Cerniglia, of Ryan Beck. Please go ahead.
CHRIS CERNIGLIA, RYAN BECK: Hey, guys. Just do you feel the ownership of eCOST is going to heard other BPO business opportunities?

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