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| Publication: | Nett Magazine |
|---|---|
| Date: | July 2008 |
| Section: | Opinion: Search Trends |
| Page: | 16 |
I DARE YOU TO COMPARE
Comparison engines and discount rate sites are sprouting all over the web. Stephen Murphy finds out which sites are succeeding and how you can benefit from the new way of letting your fingers do the walking.
Thanks to the perception that conducting business on the web is more cost effective than in bricks and mortar, people generally expect to buy things cheaper online. Comparison engines are an excellent example of how the web can work for consumers.
UK-based moneysupermarket.com offers comparisons for credit cards, personal loans, home loans, insurance, travel, ulities, broadband, shopping, mobile phones and motoring. With more than 3000 options in the home loans category alone, it's no wonder the site has grown to more than £1 billion in just a few years.
Investors are rushing to mirror this model in other markets. Local health insurance comparison site iselect.com.au has seen similar success since its launch in 2000. iSelect has grown its share through a marketing onslaught of traditional media, infomercials, radio and feeder sites. Once customers have selected a product, they have the option to sign up via iSelect's call centre, but operators have been known to up-sell customers to a more expensive option. A more recent entrant is www.moneytime.com.au, which offers the capability to search and buy health insurance without the help of a call centre.
The comparison craze is expanding into just about every online market. Australia is plagued with competing sites. But can customers really tell the difference between myshopping.com.au, shopbot.com.au, au.shopping and getprice.com.au? With matching categories and similar navigation, it's hard to find a point of difference.
The big question is, can these shopping comparison sites actually save you money? According to Choice magazine, the online bargain is usually a myth. The magazine's ongoing study of online vs retail has shown once you factor postage costs, the savings are minimal. Of course, convenience is often more of a factor than lower cost.
Online travel sites such as lastminute.com and wotif.com regularly advertise savings of up to 75% off hotel rooms. However, these figures are calculated from the hotels' rack rates, which hotels almost never charge. I've found savings on travel sites are usually minimal when compared to direct offers from hotels. Comparison engines are useful for gauging rates, but check the hotels' websites. They often give you more extras such as breakfast or deluxe rooms.
The advantage of comparison sites is they give you the ability to compare vendors and offerings, and to choose products and services that best fit your needs.
The best comparison sites analyse products or services from many vendors. Obviously the more players, the better chance you have of hooking a bargain.
To get a true comparison, you may need to compare comparison sites. This might get you the best price, but when you consider how much time it takes, you have to wonder how much you actually save.