There’s a new kid on the block within the world of group buying sites. However Wyngle is different. Rather than copying the familiar format of offering a discount off the (often inflated) recommended retail price, Wyngle offers consumers the chance to purchase goods and services for just $1.
It’s called ‘ratio shopping’. Each product on the Wyngle site (currently 350+ and growing), be it a digital SLR camera, iPad or road bike, is assigned a ratio (eg 1 in 3, or 1 in 6) which determines (in a secure back end of the site) which customer receives the purchase for just $1, plus delivery. The ratios are clearly marked next to each product on the site so consumers are aware of their chances.
This opens up two interesting scenarios for consumers. Firstly, let’s say you have made the decision to purchase an ipod. You could purchase the ipod from a normal retailer for the full price, or you could take your chances on Wyngle. If successful on Wyngle, you’ll buy the ipod for $1. However if you are ‘unsuccessful’ you’ve simply purchased the product you wanted at the recommended price.
Secondly, if the ipod has 1:3 ratio, you are able to band together with two friends and be guaranteed of getting one of the three ipod for free. You can then share the saving amongst your friends. It’s Wyn-Wyn scenario, if you pardon the pun.
“Wyngle gives Aussie’s the opportunity to get a great product at a fair market price and try their luck to get it for $1. Let’s face it, who wouldn’t buy a product they had already intended to purchase if the price was fair and there was a chance it would be almost free? You can’t lose,” Sebastian Langton, founder of Wyngle said.
Additionally the site provides prestigious brands, that are perhaps more sensitive about price integrity, the opportunity to offer consumers a discounted price without having to plaster the words ’60% Discount off….’ next to their products. It also means that brands can continue to work within the pricing guidelines agreed between the brand and their retailers.
Some observers have criticized the site for promoting ‘gambling’. Of course, there certainly is an element of luck involved, however at no point do you lose your money, so perhaps gambling is too harsh a word. Perhaps it’s more likened to an airline promotion offering you the chance to enter a draw for free flights when you book the flights you had originally intended to book.
Group buying sites have seen unprecedented growth both in Australia and overseas. Many of you will remember the keynote presentation from Spreets at ad:tech Melbourne this year. Shortly after the $40m acquisition of Spreets by Yahoo7! Many other ‘me-too’ group buying sites began to surface in Australia. Whilst it’s early days yet, Wyngle appears to be a refreshing change to what is fast becoming an over-saturated group buying market. It’s certainly a business to keep an eye on.