New service aims to fill gap in online marketplace

Media Release: 29 October 2012


New service aims to fill gap in online marketplace.

Pricemaker, an online service launched earlier this month, aims to fill a gap in the online marketplace, by creating a centralised platform for buying new, higher priced items.

The service connects consumers to ‘bricks and mortar’ retailers in an online auction, where the buyer and seller roles are switched.

A consumer starts an auction by telling Pricemaker what they want to buy and offers are then placed for the requested item by local retailers. Retailers can see the offers other retailers have made, and are able to edit their bid to remain competitive.

“The deals get better for the buyer as the auction progresses. But an offer isn’t just about the price of the item; retailers can also offer ‘deal sweeteners’, such as extended warranties or free delivery” says CE Erin Walshe

The Pricemaker online and mobile site are free for consumers to use, and currently have TV’s, kitchen, and laundry whiteware categories to choose from, with plans to get more product categories as soon as possible.

Walshe came up with the idea for Pricemaker in 2008 “while shopping around for a TV with the kids around my ankles. I thought ‘why can’t this be easier?’ while dragging my daughter away from the PS3.” He says “back then, it wouldn’t have worked. But now that smartphones are in every second pocket and online shopping is more commonplace, the idea has become much more viable.”

The exact idea for Pricemaker was forecast in a 2012 PricewaterhouseCoopers and Frost & Sullivan report, where predictions were made about the future of retail.

Pricemaker has overcome part of the “chicken and the egg” hurdle of gaining a significant user base of consumers and retailers. A limited launch is underway in Auckland and Wellington with several retailers signed up; various 100% stores, and Magness Benrow, among others.

The launch is designed to prove consumer demand, as a few remaining retailers have signalled they will come on board when there is proof that consumers are interested. “After that, we’ll be rolling out nationwide” says Walshe.

Darren Gittens, owner operator of 100% Newbolds in Upper Hutt is looking forward to “being able to place bids when I’m not too busy in the store. Being half an hour’s drive from central Wellington means we’ve often got to give customers other reasons to travel a bit out of the way – apart from our great service of course. We can make our offer stand out by getting really creative with our sweeteners”.

Another 2012 report by PricewaterhouseCoopers and Frost & Sullivan identified a new trend forming in online shopping; consumers are able to go direct to manufacturers to get competitively priced deals. Pricemaker may be an opportunity for retailers to hold on to their share of the market, by working together to create competition amongst themselves.

www.pricemaker.co.nz

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