We'll make it up on the volume

摘要

With deregulation, an upstart can land lots of electricity customers. But can it make any money from them? New Energy Ventures doesn't know yet. Perhaps we should call it the Amazon effect. It now seems to be socially acceptable in the capital markets to lose a ton of money, provided that you gain market share while doing so. Some such phenomenon may be at work in the newly deregulated electricity market. A Los Angeles-based startup called New Energy Ventures seems to be wonderfully successful at luring customers. But what has it accomplished for its owners? Nothing yet. The company lost $20 million (after-tax) on $208 million in sales in 1998.