To: Zeuspaul who wrote (6904 ) 3/31/1999 11:06:00 AM From: peter michaelson Read Replies (1) | Respond to of 14778
March 31, 1999 10:16 PriceGrabber.com: The Site Online Retailers Don't Want You to See! LOS ANGELES--(BUSINESS WIRE)--March 31, 1999--Want to know where to buy brand-new computer equipment at up to 33 percent below cost? Visit pricegrabber.com , a free Web site, for a list of the top 100 such deals on the Internet. There is no charge to consumers to use the service. PriceGrabber.com technology automatically searches the Internet for products that are sold below cost -- a practice known in the trade as offering "loss leaders." Reputable online retailers such as Amazon.com (Nasdaq:AMZN), Buy.com, Onsale (Nasdaq:ONSL), and eCost reportedly rely on loss leaders to attract potential buyers to their sites. Although not all visitors to a site are expected to buy, a premium is placed on the fact that they visited. This phenomenon is known as "traffic." Some major Internet businesses such as GeoCities (Nasdaq:GCTY) and Yahoo! (Nasdaq:YHOO) have been founded almost entirely on traffic. Online retailers such as NetZero.com and Buy.com have taken the traffic concept to new levels by enticing consumers with everything from free Internet access to free PCs to below-cost merchandise. Businesses that do this reportedly make their revenue from advertisers, who pay the site to showcase their ads, thus allowing the sites to sell below cost. As an example, it was recently reported that Buy.com offered Hitachi 19-inch monitors at 72 percent below estimated wholesale cost. PriceGrabber.com users are the first to know about such deals. In the first 24 hours since launch more than 10,000 PriceGrabber.com users have visited the site.