AM Online

Ad savings behind Totalise profits

Total Eurekar has announced a £15m turnover since launching its Totalise online car retail business in October.

The company, which imports cars from Europe, says it has made £3m profit but has only spent £50,000 on marketing.

Peter Gregory, Totalise chief executive officer, said: “Unlike most internet operations we have not thrown vast revenues at marketing the business. This is why we believe Totalise Eurekar to be the only profitable business in a highly competitive sector.”

The collapse of dealer group DC Cook in January, which was No25 in the AM100 with a £340m turnover, is widely thought to have been the result of over spending on internet activity. Richard Branson's Virgin Cars is believed to have shown an interest in acquiring some of DC Cook's outlets.

Since launch, Virgin Cars has sold more than 3,200 cars worth £50m via its website and plans to move into the scooter and motorcycle market in the summer.

Chief executive Ian Lancaster said: “January witnessed our highest sales rate to date and we are on target to recover our start-up investment by the end of the year.”

If you are not a registered user your comment will go to AM for approval before publishing. To avoid this requirement please register or login.

Comment as guest


Login  /  Register

Comments

No comments have been made yet.