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az_maverick

11/03/07 1:07 PM

#86907 RE: Howardhaftel #86891

Uhm just had to comment on the add more lose more theory...it's one thing to add revenue that isn't producing a desired margin, but when you can add revenue at the margins seen on that 8K, that's good to me.

SG&A needs to be trimmed and one of the advantages of adding stores is ecomonies of scale (consolidation of overhead). It's a basic model that has worked for hmmm...the banking industry, the airline industry, the telecommunication industry, etc...

The basic premise is to have marketable product that is in demand, and have that product generate acceptable margin.