1
00:00:00,656 --> 00:00:01,886
Those indirect

2
00:00:01,886 --> 00:00:03,217
source rules

3
00:00:03,217 --> 00:00:04,347
are then also

4
00:00:04,347 --> 00:00:05,337
figured into

5
00:00:05,337 --> 00:00:06,458
those costs

6
00:00:06,458 --> 00:00:07,758
because

7
00:00:07,758 --> 00:00:08,458
just like

8
00:00:08,458 --> 00:00:08,838
Southern

9
00:00:08,838 --> 00:00:09,799
California,

10
00:00:09,799 --> 00:00:10,999
well, we've seen

11
00:00:10,999 --> 00:00:12,422
a pretty large

12
00:00:12,422 --> 00:00:13,413
expansion in

13
00:00:13,413 --> 00:00:14,193
Reno, for

14
00:00:14,193 --> 00:00:15,133
example.

15
00:00:15,133 --> 00:00:15,783
Hey, I don't

16
00:00:15,783 --> 00:00:16,473
have to mess

17
00:00:16,473 --> 00:00:17,454
with this, I have the

18
00:00:17,454 --> 00:00:18,014
additional

19
00:00:18,014 --> 00:00:19,074
transportation

20
00:00:19,074 --> 00:00:20,234
cost.

21
00:00:20,295 --> 00:00:21,435
And one

22
00:00:21,435 --> 00:00:22,915
early on growing

23
00:00:22,915 --> 00:00:23,635
up, we all

24
00:00:23,635 --> 00:00:24,556
learned one of

25
00:00:24,556 --> 00:00:25,726
your basic rules

26
00:00:25,726 --> 00:00:26,516
was

27
00:00:26,516 --> 00:00:27,717
a transportation

28
00:00:27,717 --> 00:00:28,397
dollar is

29
00:00:28,397 --> 00:00:29,611
typically

30
00:00:29,611 --> 00:00:30,882
seven times more

31
00:00:30,882 --> 00:00:31,443
than a

32
00:00:31,443 --> 00:00:32,303
warehousing

33
00:00:32,303 --> 00:00:33,164
dollar.

34
00:00:33,164 --> 00:00:34,005
So for every

35
00:00:34,005 --> 00:00:35,326
dollar you spend

36
00:00:35,326 --> 00:00:36,357
inside the four

37
00:00:36,357 --> 00:00:36,907
walls, you're

38
00:00:36,907 --> 00:00:37,638
gonna spend

39
00:00:37,638 --> 00:00:38,969
seven dollars

40
00:00:38,969 --> 00:00:39,689
moving it

41
00:00:39,689 --> 00:00:40,990
somewhere.

42
00:00:40,996 --> 00:00:42,047
that's changed,

43
00:00:42,047 --> 00:00:43,007
that model has

44
00:00:43,007 --> 00:00:43,738
very much

45
00:00:43,738 --> 00:00:44,469
changed now,

46
00:00:44,469 --> 00:00:45,530
especially with

47
00:00:45,530 --> 00:00:46,941
e-commerce.

48
00:00:46,941 --> 00:00:47,922
And you know

49
00:00:47,922 --> 00:00:49,123
e-commerce when

50
00:00:49,123 --> 00:00:49,823
I we were

51
00:00:49,823 --> 00:00:50,674
just starting

52
00:00:50,674 --> 00:00:51,605
was

53
00:00:51,605 --> 00:00:52,325
one or two

54
00:00:52,325 --> 00:00:53,537
percent

55
00:00:53,537 --> 00:00:54,597
of our retail

56
00:00:54,597 --> 00:00:55,698
economy.

57
00:00:55,698 --> 00:00:56,819
And e-commerce

58
00:00:56,819 --> 00:00:58,120
today is

59
00:00:58,259 --> 00:00:58,909
going to be

60
00:00:58,909 --> 00:00:59,920
about twenty

61
00:00:59,920 --> 00:01:00,711
three to

62
00:01:00,711 --> 00:01:01,701
twenty-five

63
00:01:01,701 --> 00:01:03,544
percent is

64
00:01:03,892 --> 00:01:04,953
as a consuming

65
00:01:04,953 --> 00:01:05,874
public,

66
00:01:05,874 --> 00:01:07,085
you we we've

67
00:01:07,085 --> 00:01:07,905
all we like

68
00:01:07,905 --> 00:01:08,746
the convenience.

69
00:01:08,746 --> 00:01:09,406
We love the

70
00:01:09,406 --> 00:01:10,861
convenience, but

71
00:01:10,861 --> 00:01:12,645
it does play

72
00:01:12,645 --> 00:01:13,976
a big proponent

73
00:01:13,976 --> 00:01:14,924
in where these

74
00:01:14,924 --> 00:01:15,915
warehouses are

75
00:01:15,915 --> 00:01:17,306
being located