Living and school expenses leave an average college student always hunting for a bargain — a search that means profits for one small online company.
oBaz, short for online bazaar, creates custom discounts for requested items. The company will launch a student-oriented section of its website Friday.
Unlike Groupon, which relies on a lottery system to come up with one new deal a day, oBaz lets users request items they want, then tailors the deal to their specific needs.
“We’re like Groupon in reverse,” said Andrea Lewandowski, director of marketing for oBaz.
oBaz.com is organized by an “aisles” feature, which refers to separate areas of the website customized for specific lifestyles. A new student college section targets students specifically.
If enough people request a certain item, a team of employees, called “hagglers,” call wholesalers carrying the item and negotiate a group discount price. Since sellers are more willing to provide discounts for products bought in bulk, more popular items are likely to receive a better discount.
Whether oBaz is successful depends on its visibility among college students and its insight into the age market, said John Eighmey, an advertising professor at U. Minnesota.
“It’s an interesting business model,” Eighmey said. “A lot will depend on their ability to feature deals for things that college kids will think are useful or cool.”
The orders can also be promoted with social media like Twitter or Facebook.
The current featured items on the site include a hookah for $15, a beer glass in the shape of a boot and a $50 gift card to Chipotle.
“We’re giving buyers the chance to gain power in how much they pay and save a lot of money,” said Brian Ficho, co-founder of oBaz. “We turned the whole concept of buying on its head.”
Ficho, a 2008 graduate of U. Wisconsin-Madison, said that the concept for the site developed about two years ago when the use of social media sites like became mainstream.
Lewandowski said that buying in bulk is a preferred method of business for many distributors.
“We’ll do all the stuff that no one wants to do,” Ficho said.
Groupon allows personalized requests. But spokeswoman Julie Mossler said a customer has to personally contact the company’s customer service department.
Discounts for requested items vary greatly by product, but prices are reduced on anything, Lewandowski said. A pair of Ray-Ban sunglasses recently sold at a discount of $50. A regular pair is worth anywhere from $145 to more than $200.
“Most websites organize products by categories, but we ask ‘Who are you?’” Ficho said. “Are you a golfer, a mom, a gamer, a college student?”
The company receives its funding from an investment firm. Lightbank gives startup companies like oBaz between $100,000 and $5 million in loans. The two founders of oBaz are former Lightbank employees. oBaz currently has seven employees, and hopes to add an eighth soon, Lewandowski said.