Business/Site Expansion

Within Exisiting Site or Create a New Site?

[Skier]

We have a profitable little site that sells "our widgets" and are planning to launch a site that sells "all widgets". We make about 3 times the profit per unit on sales of "our widgets" versus an "all widget". However, the total market for all widgets is about 50 times bigger.

Here's the issue we are grappelling with: Do we take advantage of the traffic already going to "our widgets" and launch the new "all widgets" inventory within the site? Or do we avoid cannibalizing sales and start a whole new site?

We wonder about the opportunity cost of waiting for the new site to gain visitors. Oh yes, sales are seasonal, starting in about two months and lasting only four months each year.

I wonder if there are any rules of thumb or experience that would help us reach a decision?

[zulufox]

I'd continue to run "Buy our Widgets" forever and then start a brand new "Buy all Widgets" (which includes your widgets).

This way you never lose your current customers, keeping your income stable and safe while you experiment, learn, explore, and generally be daring with your other "sell all widgets" site.

Later on you can decide if you want to close your "buy all widgets" and 301 redirect the vistors to a sections on your "buy all widgets" site that sells your widgets.