Thursday, November 15, 2007

Whats with the ad's

Ok, here is a question that has come up, and I suppose it is worth talking about. If you look at our site you will see that we actually sell ad space to our competitors (via google ads) So if you are looking at tires on our site, you may see ads for tires from other companies.

To understand this you must realize that we are well aware that our customers already know that they have options. As one of the smaller sellers, we realize that our customers have already checked out the big guns before they come to us. The beauty is that because we are so small, we have much less overhead than the big guns, so our prices are usually lower or at least on par with our competitors. So we allow these ads for two reasons.

1. We are not sending anyone anywhere that they didn't already know about. So in a sense we are just allowing comparison shopping between rivals. Since our prices are typically lower we are confidant that most customers will come back. In the event they find a beter deal somewhere else, we may lose the sale, but at least we made a little on the ad. This brings us to point two.

2. By putting a small proportion of our competitors advertising dollars in our pocket, we are able to keep our prices lower. The better our prices the more we sell and the better it is for everyone.

So until such a time that we get large enough that the general public will come to us first and not know about the smaller guys. We will continue to leave the ads on the site and take the extra revenue as a bonus.

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