The problem with that idea (internet sales - local delivery) is that how do you do a test drive first?

That is the problem the car dealers are going to have to face, and the one I have already had to face in my computer business. Customers come in, test the equipment, get a list of part numbers they need, using my time which they feel is free, and then go buy it off the net directly from the manufacturer, or a net division of one of my distributors at my cost.

I watched gross profit on computers go from 40% back in 1980 to 2% today. Makes it not worth selling hardware, and that is exactly what we have done. We are now a software company.

In actuality, it is not better for the customer. The money they save up front is lost in after sale support costs. When I did complete systems, I was responsible for the complete system. Now the customer has the problem of dealing with hardware and software support. And if the hardware support is an 800 number and mail it in for swap out, all I can tell them is to call me when they have the hardware functional. I can not tell you how many times I am asked to do a complete system by second time buyers....

If I wrote badly and my thoughts were not clear about profit in my previous post, let me set the record straight. Any business has to make a profit, enough to be worth all the grief of being in business, to stay around. The point I was trying to make was that it just seems silly to advertise that you will sell "below invoice", and expect anyone to believe it. It just can't be done.