Group buying websites allows business owners to take advantage of economies of scale by offering discounts on products/services to a high number of purchasers buying the same thing within a designated time frame.There are two main group buying websites for business in the UK:
Newly launched in June by Andries Smit, a chartered accountant with experience at PwC and Morgan Stanle, group buying website SME Discounts has a similar business model to Huddlebuy. Subscribers can receive between 40-90 per cent discounts if a minimum number of purchasers sign up for a deal. Against each deal provider, there is a list of comments from previous clients so you can check the credibility of the product/service on offer. As with Huddlebuy, there is no charge for businesses to issue a deal but the site will take a negotiated commission from sales. The group buying website aims to become an SME community hub where people can start and contribute to discussions relating to the SME sector through the blog and discussion forums. To date, the site has offered discounts on web design, business cards, copywriting services and business valuations.
In addition to these two group buying website, there are three B2B sites in the US, which may soon break into the UK market: Group Price, Office Arrow and Bizy, all of which operate a similar model to the UK sites.
Will group buying websites take off among B2Bs? It all depends on two things. The quality and consistency of the deals offered and the customer demand. As always, the power to make or break any new business concept lies with the consumer.
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