MEGAN SCOTT explores a Web site that brings together bargain hunters in search of group discounts.
A new breed of Web site is mixing the current social networking craze with the tried and true group-discount concept.
The idea: give Web surfers who are interested in purchasing the same product a forum to organize so they can approach vendors to seek group discounts.
"It's a win-win situation for everyone who participates," says Melissa Glozman, a frequent user of her husband's Web site, http://wwww.cheapstingybargains.com . "As a co-op organizer, it's definitely worth it because of the savings. And for the vendors, it's a great way for them to lock in a certain amount of sales at any given time."
Online co-ops -- not to be confused with condo living -- are perfect for people who are suckers for a good bargain. After all, no one wants to pay full price for something. And how often can someone bargain with the sales people at Macy's?
It's the latest wrinkle in the social networking craze that's changing the Internet from a place for research to a place to socialize. You can meet the love of your life on match.com, find old classmates on classmates.com, tell the world how about your life on myspace and other blogging sites. You can even trade books, clothes and videos. So why not organize a group to save money?
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GETTING STARTED
Generally, a co-op starts when someone posts a message on cheapstingybargains.com in search of others who want to purchase a product or service, such as 32 inch Nikon televisions or Honda Odysseys. Once the initial poster gets enough people (that person, who becomes the co-op's organizer, can decide how many is a good number), he or she contacts the vendor to negotiate a lower price for each buyer.
"It's a way for vendors to clear out their inventory," says Glozman, a mother of two small children who lives outside Philadelphia. "If they have 10 items in stock and I am going to them with eight people, they know they are going to sell eight items."
Of course, this all sounds good in theory.
But the co-op forum on cheapstingybargains has been slow to catch on. The Web site has only one success story since it was launched earlier this year. Participants received a 10 percent discount (or $2 to $3 depending on the size) on the Purz-n-izer, an organizer for the purse that makes it easy for women to switch bags.
"I think for the co-op to be successful it has to reach a critical mass of users and people have to understand the concept," says Michael Glozman, who founded cheapstingybargains more than two years ago. "People have to get used to the idea. Enough people have to be interested to generate a posting. They have to see some successes happening. I think once that happens, it will really catch on."
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THE BIG CHALLENGE
Melissa Glozman has no problem finding people who want to participate.
She says the hard part has been convincing the retailers to give the discount.
"When you find a vendor who is familiar or willing to participate, it's great," she says. "And they do it over and over again. The biggest challenge for me is just breaking through."
But online bargain shopping guru Karen Hoxmeier believes the co-op concept is going to grow in popularity. More people are shopping online and co-ops are an innovative way for them to leverage their buying power.
And some vendors, like Shiami Design Group, which makes the Purz-n-izer, are buying into the idea. Shiami sold 50 of its purse organizers to Melissa Glozman's group at the 10 percent discount. Most of them do it sporadically, not wanting to constantly offer discounts.
"We have done two co-ops and we have had a great success rate," says Tashia Joyner, director of product development for Shiami. "But we are trying to keep it down to one co-op a month."
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SO YOU WANNA START A CO-OP?
Hoxmeier, who runs the deal site, mybargainbuddy.com, says people should start co-ops on reputable Web sites that already have a relationship with merchants. She recommends they target online stores, such as overstock.com and amazon.com, which are more likely to give a discount than, say, a bricks-and-mortar retailer such as JC Penney's. They should also choose practical items, such as bed sheets, appliances, electronics, and clothing -- things the average person can use.
"A car would be really hard because not everyone is in the market to buy a new car at the same time," she says. "Same with jewerly. It's hard finding someone who wants to buy a 5 carat diamond ring, let alone 20 people."
Even with only one success, Melissa Glozman says co-ops are worth the time and the haggling with vendors. She is compiling her holiday shopping list and plans to post several items on the co-op forum.
"Co-ops are just a way for people to save," she says. "Even if it's a few dollars, it's better than nothing."
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asap reporter Megan Scott is based in New York.
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