Some people have just been referred to us for help with their website and some general marketing suggestions for their business. Up until now they have been doing everything themselves and it's not been hard to sell their product. In fact they have a virtual monopoly in their marketplace and cannot supply enough to meet the demand - in fact they face the situation where the demand is continuing to rise but there is simply no competition on the horizon at all. Despite that they recently started some Adwords advertising. Can anyone give me one valid reason why they, in their situation, should be spending money on Adwords? I really would appreciate some input here because I can't see any reason at all. Stuart
1. Tell me who they are or I'll break your fingers 2. You are right, if they can't meet the demand, it is idiotic to waste money on paid clicks. unless --they want to stoke up the demand in order to raise venture money --they know that they are reaching only a tiny percentage of the market and they are planning to expand and need new orders to pay for the expansion. --they want enough customers on back order that the customers figure out that they need competition
They're a mom and pop business so they probably don't understand venture capital and even if they did they would be going to a bank. Their 'product' is a holiday home that is always fully booked (and for reasons I won't go into here their holiday home caters for people that no other holiday home in the region caters for) so having back orders does not really apply. It seemed so unusual to be playing with Adwords in their situation that I kept thinking that I was missing some obvious reason for them doing it. So I thought I should ask, just to see if I was missing something, before I suggested that they stop wasting their money. I realise that some people might think of Adwords as a way that these people could keep their product in front of interested people but there's probably better ways of doing that than Adwords. Stuart
No way I could compete with that! Your fingers are safe with me! The only way they could increase inventory is to buy another home. The obvious thing to this entreprenuer is to start raising prices until they are less than full occupancy, then advertise to a richer group of people.