Unless you’ve been living under the proverbial rock, you’ve probably already heard of the online daily deal and group-buying craze that’s hit most of the world brought on by the likes of Groupon and LivingSocial. Such sites usually pitch consumer goods and services for the masses, but the daily deal phenomenon is going beyond the mainstream – business-to-business GroupPrice (www.groupprice.com), for example, targets small businesses instead.
The Redwood City, California-based social commerce company aims to help small business owners save time and money through group-buying, on a plethora of software and services that ranges from website design, web hosting, accounting services, copywriting, search engine optimization – indeed, services that small businesses usually farm out services for.
GroupPrice works similarly to Groupon, but instead of a tipping-point strategy where a certain number of consumer members must commit to buy at a set price for the deal to be “on” within a day, GroupPrice deals occur on a week basis
“GroupPrice takes the hassle out of finding the software and services small business owners need and lets them lock in a low price that drops even lower as more of the group commits to buy,” says Van Jepson, CEO of GroupPrice. “And, sellers can now build to order and take risk out of the cash flow.”
“We’ve eliminated the guesswork and risk in the buying process by offering only pre-qualified deals from trusted companies that can help small businesses save time and reduce costs,” adds Jepson. The company claims that it does not have any direct competition, although it says Appsumo.com and OfficeArrow.com competes indirectly with offerings focused on smaller segments of the small business market.
GroupPrice was incorporated in June 2010, began its beta in mid-October that year and finally launching it in January 2011. The company closed a seed-level funding of US$285,000. It has a team of eight.
The company estimates that it will reach profitability by early 2012.