humblebeginnings - 9:49 am on Apr 8, 2006 (gmt 0) Why do companies sell stuff lower than wholesale prices? Why do folks give away free products?
"Why do people set their max bid to $3, $4, $5 per click? I'm pretty sure nobody converts that well I don't care if you giving out free gold."
It's called business. By doing this you establish the reputation of your company or brand. In this case, companies pay a lot to get the number one spot in Google, that's worth something. But remember that if folks set their maximum bid to $5, it doesn't mean they are actually going to pay $5. What they actually pay depends on many other things...
Why do companies sell stuff lower than wholesale prices? Why do folks give away free products?