The analyst meeting was held at a modest hotel to reassure investors that an eye was being kept to the costs of the endeavor, a far cry from the lavish and delicious buffets the company used to serve up at their annual gathering at the Pierre Hotel in New York City.

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On the other hand, it could be an expensive endeavor for Amazon with high investment costs in data centers and competitive pricing to fend off market entrants, but that would be a low-margin strategy.

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Make sure that your endeavor is still profitable if you incur two to three years of carrying costs and depreciation.

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