New Business idea

[AJCant]

I am currently in the process of creating my new business idea. The business is a online website, and compares prices for products. The idea is that the customer fills in a form, including the following questions :

- The product they want.
- The price that they found for the product.

We then search the product and attempt to find the lowest price as possible. Through recent practices of the process we were able to find prices a lot cheaper than other comparison websites. We then charge 20% of the saving we found, with customers still saving more using us than any other website.

What are your thoughts on the idea?

 

[JamieM]

Will results be automated and instant?

 

[spreadtrader]

It depends on what kind of product your talking about.

A million pound boat or a 200 quid TV?

 

[Paul_Rosser]

Nice idea, but have you thought of the following

- You will have to take payment prior to passing the customer the link to the discounted item, so what happens if the supplier then can't provide it at the price they quoted you ?

- How long is your discounted price valid for ? as prices on the net change daily

- If the supplier you have taken a comission for finding rips people off you may end up getting a bad reputation (or legal action) through no fault of your own

- People are going to lie about the lowest price they have found already

- You will need to include postage and packaging as part of the total price

Apart from those is a good idea, but will it be automated ? or will you need to actually perform the searches ? If it's the latter then you will need to look at the numbers to see if it's workable based on number of estimated searches an hour against what you will need to pay staff.

Cheers

Paul

 

[vvaannmmaann]

How will you be different from Pricerunner,Mysupermarket,Idealo,Findprice,Comparestoreprices,Twenga and Nextag?

 

[AJCant]

Thank you for replying.

When first starting out we will be using an automated service. During examples of the process we found that it takes around 15 minutes to finder a product which is on average 15% cheaper.

We also send out three difference sources for there products, so that the customer gets to chose which company they want to purchase the product off, and will then refund the difference. As we are doing the pricing that day it means that the price will be more valid compared to other competitors. To avoid people lying on the form, the customer also has to send us the link to where they got the product, meaning that they cannot lie.

The business will also be different compared to competitors because when comparing we where able to find cheaper products for customers, due to us searching the market. Also what will make us different is because we search the customers specific product. For example on most comparison websites when you type in "Xbox 360 Elite" it will come up with all Xbox's.

 

[VSpy1]

Sounds great - I didnt quite understand the bit about payment - you send out the link - they choose where to buy - why cant they just buy from them direct at this point and cut you out..?

 

[AJCant]

They could cut us out, however using us would mean that customers save time as we would be searching for the product instead of them, and also we will have a better idea of finding where the cheapest products are. This meaning that they save both time and money.

 

[VSpy1]

but they could email you, you send em the link, they buy direct - saving time as you find the product and saving themselves money buying direct... unless Im missing something?

 

[B&H Digital]

I'm a little confused about payment too. I thought you meant they pay you the money they've saved or something...

You'll have to be careful regarding them posting a link, as you'd have to authorise that it's a unique link first, then check the prices, then send them their better prices - but surely if you were getting a hundred requests a day, that would take ages.

Hopefully you can iron these issues out

 

[JamieM]

How is it automated if it takes 15 minutes?

I don't think it will work, it takes too long and is like a backwards step. You need to make the results instant or most people won't bother.

Also it isn't really going to save the customer time at all. If I used it I would still do the same searches as before as I wouldn't trust you to find the cheapest price.

I don't think I would use it.

 

[Fred_the_frog]

You could always find the product for the customer, tell them the price you have found, they pay you for the item & the 20%, then you buy the product and have it shipped to the customer.

The problem with automated is the results probably will be pretty naff. The problem with you looking manually is you might spend a while looking for the product, but then the customer might not be prepared to pay.


Its a good idea but there are quite a few loop holes to get filled.

 

[PrestonLad]

Hi,
People on here are likely to be very computer literate - so might be very savvy at using comparison websites... and generally shopping around on the net - therefore we might not be the best at commenting on the value of your service. But posters are certainly asking you some very good probing questions about your business model.

I think your target customer will be much less "internet-literate" - and might see real value in you offering this service. I think of my Mother-in-law.... what would she have to lose by getting you to search? So in your market research, make sure you ask the right questions, to a wide range of people.

If you can find ways round some of the loopholes, that people have suggested you investigate, and if you have the wherewithall to launch, market and run this site correctly, IMO the principle is a good one. Good luck with it.

 

[AJCant]

Thanks for the replies, I am currently trying to find solutions to the problems that you have discussed.

 

[internetspaceships]

Short version of the other posts.

Silly idea. Go and figure something else out. Honestly.

I know that you won't listen but there you go.

 

[Paul_Rosser]

You could always find the product for the customer, tell them the price you have found, they pay you for the item & the 20%, then you buy the product and have it shipped to the customer.

quote]

The issue with that is that you are then a supplier, so if the item fails you will be liable for returns, missing goods etc meaning a lot of work on the admin side.

 

[Paul_Rosser]

Short version of the other posts.

Silly idea. Go and figure something else out. Honestly.

I know that you won't listen but there you go.

Sorry but I think thats the right answer, I had a similar idea a few years ago but once you look at the potential issues it only really works if you are offering the service on very high value goods (£1000+) and there are a lot of suppliers out there who already offer this service.