posted 03-31-2000 04:42 PM         

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dude,

First, it sounds to me like the process is pretty easy right now, once you've made your bids, it only takes about a minute to get your results...and stores are still entering the program.

You suggest that (correct me if I am wrong) if everyone starts taking these discounts, then grocery stores will stop offering them. However, if they can bring in people who would not normally go to their stores by offering a discount on 25% of their total purchases, doesn't it still make sense. The big time-saving issue is that people probably won't want to make multiple stops, so if you can offer enough discounts to drive people into the store, they will probably do all of their shopping there. And, if we are arguing that these new people are less price sensitive than coupon cutters--wouldn't they be the people that might buy the high-margin, expensive products aka the people who stores want.

KG

posted 03-31-2000 12:48 PM         

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> the margins are still getting eaten by someone.
punintentional?

> The grocery business has very low margins on most products, and someone has to be losing money on this.
Exactly. This service is just a way for the grocery business to employ differential pricing, no different from the use of coupons or rebates. You may be able to use Priceline to save 30% on your groceries if you're willing to go to a different grocery store, buy a different brand, or wait a week for a better deal. But you could probably save 30% even without Priceline, by using coupons, shopping around, waiting for sales, etc. Such techniques are only going to be employed by highly price-sensitive shoppers. I don't clip coupons because it's not worth my time. If Priceline streamlines its service so that it doesn't take any time to use, the price savings will disappear too, because grocery stores will no longer be able to use Priceline to offer discounts just to highly price-sensitive shoppers.

posted 03-31-2000 10:26 AM         

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I dont't know what to say--the converts keep on writing articles about groceries on Priceline. This lady got a 12-pack of Coke for 2 bucks. Can't really argue with that too much. If the service is as quick as she suggests, maybe it does have a future.

http://www.foxmarketwire.com/money/gains/story.sml

posted 03-27-2000 04:42 PM         

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Now here is something I can believe in:
http://www.cnnfn.com/2000/03/27/technology/walker/

Priceline is going national with its mortgage services. This is exactly the sort of item where price is the only thing that matters to people and getting a good deal can mean a lot of money (notice--unlike groceries). I would think that this is an ideal area for Shattner's army.

posted 03-24-2000 06:12 PM         

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I never like to contradict myself, but here's an article from the Washington Post where a skeptic turned a believer:

http://www.washingtonpost.com/wp-srv/WPlate/2000-03/23/255l-032300-idx.html

That is not to say I think this thing will work, but it is someone to play devil's advocate.

posted 03-23-2000 12:20 PM         

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I saw this Upside.com article about Priceline's highly advertised grocery venture and couldn't agree more with the author's commentary.

http://www.upside.com/Opinion/38d6987e0.html

Using the Priceline model for groceries just doesn't seem to make any sense--people are not going to save enough money to make it worthwhile and why would anyone want to make the process any more time-consuming and annoying? Moreover, I think people are pretty brand-loyal, and not being able to specify a brand diminishes the value of the service. I think the online grocer's business model makes much more sense (value=convenience) and they can't make this work. Even Shattner is not going to be able to help this one.

posted 01-27-2000 12:13 PM         

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priceline.com (PCLN): -$0.06 reported, -$0.08 expected, -$0.14 same q last year.

http://www.corporate-ir.net/ireye/ir_site.zhtml?ticker=pcln&script=410&layout=7&item_id=71240

posted 01-27-2000 11:51 AM         

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Well, they even beat my whisper #s... : )
6 cent loss and revenue of $169 million.

Thanks for the article. It mentions the same problem I see, that as airlines get better at using technology and online selling themselves they won't need priceline as much. Priceline is doing well to jump into new product categories. If somehow their patents hold up in court (which i'm not too sure they will) then they have a chance to be something big. If the patents don't hold up I don't see any way they could ever become too profiatble.

Trent

posted 01-26-2000 04:28 PM         

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Earnings come out tomorrow. I see them beating the estimates and coming in with a loss of seven cents.
Also they announced today that they are launching their service in asian markets with telecom conglomerate Hutcison Whampoa. It is only planned to offer the airline ticket option at first but will expand soon.

Trent

posted 01-07-2000 09:30 AM         

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Here's a good possible from Cramer for Priceline recent downturn - When I think of VCs, I usually think pre-IPO, not Post, but apparently, they still have a lot of impact on a stock price.

"From Cramer - Now let's take eToys (ETYS:Nasdaq) and priceline (PCLN:Nasdaq), two stocks that have been in free fall of late. My take is that the VCs here have been much more willing to go. Maybe they don't like the business model or the execution. I don't know. But all you did need to know about these stocks were that the VCs bolted. Didn't happen to Yahoo. I think that the betting line on the Street is that the VCs will all bail from Commerce One (CMRC:Nasdaq) as soon as possible."

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