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Many stores want to save advertising money and ask their own workers to introduce their friends.
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The huge scale will let him save on advertising costs that typically run dealers $300 per car, he says.
The startup then takes a cut of what you save in advertising dollars.
Chief Marketing Officer Sean Glass says they can offer students more reasonable rates, because they save on advertising costs by gaining instant access to the student body.
Other findings from the survey: Companies will save on advertising by leaning toward cheap promotional vehicles like in-store promotions and e-mail marketing for online deals.
Many upstarts are willing to pay a hefty fee for a generic name because they think they'll save on advertising expenses in the crucial early stages of getting established.
And what you save on advertising can be invested in winning more often at retail.
This saves on advertising and printing.
"Here's a case where you should be saving your advertising dollars and spending it on public relations," Mr. Twitchell said of advocacy groups.
By clustering dealers, Lithia saves on advertising and other overhead.
Companies prefer to do this because they can save on expensive advertising and agency fees.
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CEO of Professional Science Editing for Scientists @ prosciediting.com