This… is brilliant. Google and Facebook are highly lucrative because they designed a system where your profit margins (as a business) are largely sucked up by Google and Facebook by making you bid against your competitors at higher and higher values until someone is willing to give up almost all of their margins to be the top bidder for the favored “top spot”.
Hypothetically, if you make $1 in profit on your product, theory says that some competitor will bid up to $0.99 to secure that sale and if you don’t bid this amount also, your sales will suffer.
The end result is that Google and Facebook end up consuming all the profits for a large number of businesses online that have to survive by advertising, which explains Google’s immense profit margins.
Assuming what you say is true, this is truly a ballsy move by McMaster. Betting that their website is unassailable by their competition and thus such a value-add that they can forgo playing the losing game that Google and Facebook has setup is brilliant. I have such respect for that.
Hypothetically, if you make $1 in profit on your product, theory says that some competitor will bid up to $0.99 to secure that sale and if you don’t bid this amount also, your sales will suffer.
The end result is that Google and Facebook end up consuming all the profits for a large number of businesses online that have to survive by advertising, which explains Google’s immense profit margins.
Assuming what you say is true, this is truly a ballsy move by McMaster. Betting that their website is unassailable by their competition and thus such a value-add that they can forgo playing the losing game that Google and Facebook has setup is brilliant. I have such respect for that.