[GuyBBY]

Hey guys,

Craigslist, ahhh Craigslist. A blessing and a curse for me.

My business is online classifieds and I am at the end of a revamp/redesign of our site. We now have loads more features (both revenue generating and free) and we are functioning as a community site as well, linking those in the market with each other around a common interest.

Now, while I have used craigslist to purchase my accounting software, find my CTO, and gain many other items for my business, I also am faced with them being one of, if not THE biggest, competitor I have.

The online listings are free and you can upload a few pics with it them as well. So, Craigs will always have the "free" thing going for them and I am wondering how to combat this in other ways outside of my known confidence that our site gets the user much more and is EXTREMELY cheap (20-40% below market averages for the services we provide) but profitable. I know that we will do well like before the updates, but at the same time I can see a little bit of our market using Craigs first.

Is there anyway to strategically and effectively convince and gain back that small percent that strays to the Craigs approach...or should I live and let live and keep an eye on them but not invest too much concern in their competition?

Thanks! Experiences and advice much appreciated.

Guy

[JMI]

Lol, if you want me to put my very costly and bad experience with craigslist on your site, that'd be fine with me. I don't really know what to tell you except for what I'd tell you to do with any other competing business. Make a list of their strengths and weaknesses, and then capitalize on the weaknesses while making sure you are at least equal-to or better than their strengths. For example:

Blockbuster vs. Netflix

Netflix comes around with a service that allows you to receive movies from the comfort of your home. Blockbuster looks at this and realizes that with Netflix, ok, you can get your movies in the mail, but you can't come into the store and get them right then if you wanted. So, Blockbuster sees Netflix's main strengths and weaknesses, and then capitalized. They create their own movie-mailing service, and then advertises that you can get them in the mail, and then even get them from or return them to the store also.

What does Netflix do? They think, "Ok, we can't have people come into our store to get movies instantly, what can we do?". Now people can watch movies instantly on their computers via Netflix. They matched blockbuster's service, and possibly even one-upped them.

If you don't understand what I mean by this, then I'll try to come up with a better example. Just make a list of your strengths and weaknesses, maybe have a few others do this too, just so you get different views, and maybe they'll even see things you don't. Then make a list of craigslist's strengths and weaknesses, and if you can, have a few others do it too. Then compare them, and try to find ways to improve your own site.

[GuyBBY]

JMI,

Thanks man truly appreciate it. And you know what, I did this and I know for certain that we are much better as we hone in on the markets specific interest and not only provide our revenue services, but have blogs, forums, newsletters, event calendars, a login platform, "Ask the tech" feature (boat technician), etc that will keep them hooked and visiting. I just got a bit intimidated by the fact that craigslist has the one up on the free thing, but now "talking it out" so to speak refreshes the outlook and keeps you on target.

Thanks again,

G

[Corey Bryant]

With Craig's List, you get what you pay for normally. Most people are on there looking for a cheaper version of something. With an online classified ad - it is basically what is better than the other and what do I get out of it?

With Craig's List - I don't get that much out of it - and don't use it that much. I use some other classified ads quite a bit and have been known to pay for them from time to time.

Keep your classifieds and do something better. Let me know what I get out of it. If I get something better than Craig's List - where can I sign up?

[GuyBBY]

Hi Corey,

Thanks for your input. It helps me think things out a bit more or, rather, remember the initial purpose and stratgey to show users why, while they can put their item up on craigs for free, my business connects them beyond the paid services, but offers free and helpful ways to stay in touch with their interests in the small community in which they are a part of. (Marine/boating)

Thanks!

Guy

[bostonbrian]

I think sometimes the major problem with any online business is really developing the credibility of the site in the mind's eye of the consumer and then once that is accomplished, the ease of the transaction is key. I had a customer IM me last night, wanted to order something from our e-catalog, but was not sufficiently computer literate to understand how to use the paypal checkout method of our website, so I ended up sending him a paypal money request to make it easy. However, if I had to do this for every customer I wouldn't have enough time in the day to do the other tasks. So potentially that is a pitfall of online sites. How do you convert the attention of a visitor or customer into a transaction?

[GuyBBY]

Brian,

We use Google Checkout and provide the ability to contact us directly if you have a problem or need assistance.

Guy

[bostonbrian]

I will have to see if I can incorporate that into Joomla CMS.

[GuyBBY]

What is Joomla CMS?
Oh and by the way, I am here at the Ren Ctr. now at work. We should discuss sometime to meet up and see about the Boston group.

Guy

[bostonbrian]

Joomla CMS (content management system) Joomla!

It is an opensource way of administering your website in a variety of ways...

[dreck345]

GuyBBy,

There is money to be made in positioning yourself as a "premium" (even though your price is very low I'm sure) in the market. People are willing to pay for quality. Not only that, the people who pay tend to be more loyal as they want to make use of their investment.

Like others have said, you do get what you pay for. Craigslist sometimes has very silly posts. Play on their weakness by making quality classifieds one of your strengths.