Actually I think AWEB makes tons more sense than many other WWW businesses. Here's why
1. Many of use love to do battle with a salesmans, making the best deal, but there is a significant portion of the population that does not like to deal with this. These are the people that I help get a good deal. "Can you help me buy a car" I have heard that many times. So a service that helps a comsumer get a good deal is something that I think has a market.
2. Many people have been screwed by car dealers, and feel they have lost thousands of dollars by getting sucked in. In actuality, they have. AWEB may not be the absolute BEST BEST BEST prices, but it will certainly be GOOD, and the average consumer will not get burned to a crisp.
3. Women love to shop, but HATE TO CAR SHOP, the internet is a way for them to shop and feel comfortable. A friend of mine unaware of the IPO and everything, just told me she bought a Honda through "the web". Her boyfriend is in car financing but she wanted to do it "by herself"
4. Hating car salesmen is so typical, its usually an easy line for comedians.
5. Compared to other internet business, there is good money to be made in this field, there are tons and tons of buck in the auto industry. Compare this to selling books or computers.
6. Cars are the only things that are still haggled all the time, the one price stores never really took off except for Saturn.
7. Why do women love Saturns....first reason they went to Saturn is because they did not have to worry about the Salesman.
8. Many people are scared of car salesmen and getting ripped off.
9. Sure car companies can do it themselves but they need and third party to do it right, to be independant, to pit same brand dealers against each other, as well as different manufacuturers.
Bottomline, I think AWEB and this line of business has a place, and a good place on the Internet. So it is not a question of if, but more a question of who. It is still early and the two leaders are ABTL and AWEB. There is probably some space for another, but I believe that in the long run, these internet stock will do better than many of the portals, and search engines and other internets.
Reminds me of the old economic theory: "What is good for GM is good for the country" AWEB should do well |
