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We're planning on lauching a 2nd site that competes purely on price - free delivery on everything. Gives us the freedom to only chose products that are cheap to send. No accounts, no preorders, 2nd class shipping, no freephone sales line etc designed to target the bargain hunters that pass by our main site.
Would be interested to hear if anyone has had experience setting up a 2nd site within the same niche, targeting a different consumer.
To be honest the second site was setup because we purchased a competitor and just wanted their brand so created a site that looked like their old one but powered by our technology.
It works well but I'd go out of your way to make them different as possible - otherwise it soon pops up all over the net the 2 sites are conected and a lot of your sales will flock to whichever has the current best deal - and also you'll find newsgroup discussions wondering what you are playing at running 2 sites with the same product range as if you are untrustworthy!