Website Idea - What do you think?

[pacmania_2001]

For one of my university class assesments a group of us have to develop an eCommerce business site.

The idea I have is to create a site that provides the service of getting discounts on internet/mail order products by bringing together prospective consumers so that they form 'buying blocks'.

Here's an example: Say that their are 5 consumers (persons A-E) who want to purchase a Sony DVD player. Individually they might be able to purchase the DVD player for $100 however, if by forming a 'buying block' they might be able to buy (in bulk) the player for $90.

We don't have to create the actual site so things like how the back-end programming aren't a factor in the idea.

Basically, what problems/comments/suggestions can you see with this idea and also does anyone know if such a site (with the same idea) exists already?

Cheers.

[Tommyknocker]

Sounds like a cooperative (co-op).

[Solarjetman]

If you don't actually need a working product and its just making a blueprint of the idea, it sounds good. Actually making it would be lot more work than it seems I think.

[Gees]

Yes, it's the sort of perk that you can get as a member of a (insert industry here) business association. Like discounts on insurance, office supplies, and things like that.

Pac, does it have to be an original idea? Because it has been done with variations. But I think it's a good idea for your project and could definitely work if you set it up (in theory) to be sort of like E-bay bidding, except you collect people interested in a particular product.

Trick is to acquire the minimum people necessary for a good price on any one product.

ex: 10 people reduces price by 10 %; 20 people = 20% etc.

May need to implement a type of voting system among members. That is they say what discount they want to achieve before their "vote" counts.

[Tommyknocker]

Of course it is an old idea. Did they stop teaching history in public schools? The first time I heard of it was learning about the 19th century. The Grange co-op were able to buy farm tractors at a discount because they bought in quantities.

[Gees]

Did they stop teaching history in public schools?

Maybe. And a strongly suspect they've banned Spelling Bees! :cD

No reflection on Pac, I mean many, many other posters.

All my errors are typos. That's my story and I'm sticking to it. :cD

[pacmania_2001]

Of course it isn't a new idea in the offline world but in terms of online sites offering the service is what I mean.

The advantage of it being online is that it would be so much easier to find a larger number of people that also want to buy the same good.

By the way Gees, I like the idea about the 'voting' system.

[Gees]

Thanks, Pac. :c)

Good luck with it all. I think you could do a good job with it.

PS - would you charge to become a "member"? or would your proceeds also come from advertising? shared profits on sales?

[g_shocker182]

Isn't there a BJs or Costco in Austrailia?

[housepig]

I've seen something like this online, but I'll be damned if I can remember the name of the website.

I've also seen these for private companies - you'll get a notice on the company intranet of things that are available at a discount through the 'company store' - you get a code or a link to order from the manufacturer, but everybody gets a bulk discount negotiated by their employer.

not to say that you can't put together a solid site with a good hook for this idea.

[Devanshu]

Sound like a good plan. I agree w/ g_schocker...dont you have a costco or a Sams Club in austrailia? That being said, I only have one suggestion...how about a calculator on the site that lets people know how much they pay individually and how many more people they need for the deal to work. For instance, for your sony dvd player idea, if the person is willing to spend 75 bucks, the calculator shows that they need one more person...does that make sense?

[The village idiot]

I've seen similar too, but it is not a common online thing. Normally this ia associated with specific clubs or organizations.

Still is a decent idea though. Oh wait, there are a few computer parts "clubs" where you get a discount if you pay your membership, and they only offer certain products for sale. More like they are buying what they can get cheap and reselling, as opposed to finding an item, and then seeing how many people you can find that want to buy that same item. I have seen similar on some message boards too. Everyone pools there money to buy X item so that they can get a better price or meet the production run in order to get the item. Mostly associated with electronics components.

[MackemX]

is this not something along the lines of letsbuyit.com do or did do as I'm not so sure they still do it. (It was available in UK)

they would have a product and the more preorders they got before the specified date, the cheaper the item got

this is the info from their site that is still there though but I think it ain't as popular as what they thought so maybe they've stopped it

Co-buying made easy
Co-buying is co-operative shopping for the 21st century. It's a really simple way of getting better value by bringing people together via the Internet. The more people that are interested in a product, the lower the price we can negotiate with Merchant Partners and manufacturers. The more people, the lower the prices.

LetsBuyIt.com Co-buys are usually the very best prices and savings available for that particular product! Co-buys are LetsBuyIt.com's flagship offers and killer deals. Make sure you're quick, because they are always incredibly popular and some deals sell out within an hours!

Before you join a Co-buy, you need to decide whether you would like to buy at the current price - the price reached when the Co-buy closes - or at the Best Price only. If you choose to buy at the current price, you will receive the product (provided your payment details are accepted) and you will pay the closing price.

If you choose to buy at the Best Price and the Best Price is not reached (i.e. the required number of participants is not reached), you will not receive the goods. Your order will be cancelled and you will not be charged.

I've seen other similar things to this also but names don't spring to mind

[Devanshu]

Of course it isn't a new idea in the offline world but in terms of online sites offering the service is what I mean.

Alright guys, lets get past this not being an original idea and give him some advice.

EDIT: Alright folks, lets get past this not being an original idea and give him some advice. There ya go Gees

[MackemX]

I just thought he wanted similar sites judging by his original post and he may actually find the bulk buying on the letsbuyit.com link for some ideas but looking again I just can't find any pages with the co-buying on

you could do it it a bit like Gees mentioned and have discount bands 1,2,3 etc which would give an idea of what the purchaser would pay

then people could choose their Band so for example you have a product that costs £200

Band 1 is £190 needs 5 members
Band 2 is £180 needs 10 members
Band 3 is £170 needs 15 members

the members would only see the Band and the price it costs in that Band but not the amount of members that are needed or have signed up to that price

so lets say you get 15 members joining various bands and this is which Bands members have chosen

Band 1 - 2
Band 2 - 6
Band 3 - 7

this means you as the buyer can buy them for a total cost of £170x15 items which is £2550 but the money recieved from all members would be £2650

a profit of £100 for the buyer and all the members are happy they got the item at the price they were willing to pay

If you didn't get enough for a Band you could email the higher Band people asking if they would drop a band to clinch the deal

I'm sure letsbuyit.com showed how many users had put in for a certain price so this method could not be done here as all members in the above example would only pay Band 3 rates as 15 members have joined the group

I think with letsbuyit.com you could also enter a price that you would buy it at and it would enter you if that price level was reached which is what this is above in a way but again it showed the reduced price to all with the amount of people interested

this idea probably wouldn't work but it would be nice to think that if it did, you as the bulk buyer would get a small cut if there are members in Bands lower than the Band you buy it at

I'll stop dreaming now

[Devanshu]

I just thought he wanted similar sites judging by his original post and he may actually find the bulk buying on the letsbuyit.com link for some ideas but looking again I just can't find any pages with the co-buying on

Sorry, didnt think about that

[pacmania_2001]

Thanks for all the help.

I don't think I will go ahead with the idea seeing the similarity to letsbuyit.com.

Oh well, back to the drawing board.