How directories prices and advertising fees are formed?
– Initially prices on directories and advertising were fixed by Maxwells, in accordance with the international market. Prices very really high in 1995. All my attempts to reduce them were rejected by Maxwells. It happened because initially the product intended for sale abroad or to foreigners doing business in Russia. But the market has soon turned our strategy. Sales increased in Russia, first of all in corporate and departmental sector. – Did you try to reduce the prices? – Repeatedly. But Maxwells always rejected. I then understood they were right. On one hand, we don’t sell books, we sell information. Exclusive information, for exclusive audience. Our prices are too high for mass audience. It is my first reason. The second reason – full and reliable information. Such information costs that money. On the other hand, our advertising efficiency is not the same as magazines or newspaper advertising efficiency as we work for exclusive audience. There is no sense to advertise mass produc
