In my opinion, everyone is looking for a bargain. Look around you; every retailer, wholesaler, servicer, mom and pop store, etc. is advertising a bargain. This article is a case study of an online seller that purports to give one the biggest bargains. It is fittingly branded as Pisobid.com. The discussion will not only be limited on what is Pisobid.com. More importantly, it will tackle key aspects of the same with the intention of determining why it is successful and how you can use that same formula for your own economic gain.
What is Pisobid.com?
Pisobid.com is a buying website that operates much like an online auction. However, that is where the similarity ends. The company posts products and services online at a starting bid of one peso without reserve. Of course, most of the products and services have a market value way above the starting bid. And most of the individuals who participate in the auction know this.
What the buyer thinks happened is that he bought something way below the market value. What really happened is that the seller sold the item for way below the market value BUT way above the purchase or consignment price. What is worst is that the best sellers make you think you need the item not because you will use it but because it is cheap.
I am actually a fan of group buying websites and of Pisobid.com. Based on my analysis they actually make a hefty and steady stream of profit because of the following reasons:
- Branding: The name alone suggests that theoretically, you can win a trip to Boracay or you can buy an iphone3 for one peso. However, the reality is this rarely happens. When I say rarely it means I have an account with Pisobid.com. I bid regularly and I have never won for one peso.
- The Power of Suggestion: They only sell items they bought or were consigned to them for a bargain. Hence, the suggested retail price is not the actual break-even price. In other words, they are suggesting (not saying) that the item is way above its actual market value.
- Social Media: like most buying websites they rely on social media to initially create a buzz and then put themselves up as a trusted brand as a fait accompli.
Moral of Story
If I were to sum up the important points to take away from Pisobid.com, it would be the following:
- First, you need to give them kudos for the brand name. The term Pisobid in itself is enough to tell you what you want to hear.
- Second, you need to present yourself or your business, as if you are already successful. Never settle for a marketing strategy that merely suggests that you will be successful.
- Third is value for money, or at least the perception of such.
- Fourth, generate the idea of need. When I go to Pisobid.com, I always have to remind myself that I should only bid for something I need, not something I want. Well, like most consumers I fall off the wagon a lot of times. I mean, I need a remote controlled LED light that changes color like its Christmas everyday (at least I think I do)!