Hi JohnC
This is an eternal debate which has plenty of legs. When you say before Google and eBay how did people find your website? Through a search engine? Which one?
As more businesses come online of course the competition gets greater, especially in more generic areas and for more generic search terms.
Search Engine Optimization isn't difficult if you get the basics right - indexable content, rich and engaging & decent navigation. The tricky part is link-buidling and gaining more authority with search engines in order to rank higher in the SERPS.
Offline optimization is key too: Is your website address on all your collateral - business cards etc? On the side of your van? Are you able to get PR in magazines or the local paper? Have you considered social media? Can you honestly say your site is optimised for usability too?
PPC doesn't need to be super-expensive. Chasing tail terms can be cost effective. You may not get lots of volume but you have the chance to nab a sale on a cheap keyword right when the consumer is ready to purchase.
Check out http://www.adexcellence.com for top tips and training on adCenter and let us know how you get on.
Cheers
Mel
Mel - adCenter Community Team