Mercata ``Drives'' New Buyers to Buick; First Nationwide Auto Group Purchase Reaches New Audiences
21 November 2000
Mercata ``Drives'' New Buyers to Buick; First Nationwide Auto Group Purchase Reaches New Audiences
BELLEVUE, Wash. & DETROIT--Nov. 21, 2000--Mercata(TM) (www.mercata.com), the leading provider of Internet-based group buying services, today announced the results of its "PowerBuy(TM) Deal of the Century" promotion, which offered car buyers across the country access to increased savings on manufacturer's rebates on new Buick Century's -- using Mercata's patented and patent-pending group buying technology.In a promotion which ran Oct. 19-26, 85 Century buyers participated in a group buy of a special rebate good toward the purchase of new Buick Century automobiles. This was the first national online group buying partnership involving a vehicle manufacturer.
The "PowerBuy Deal of the Century" promotion ultimately allowed buyers to increase the value of the rebate from $200 to $514 -- an increase of 157 percent. These rebates can be used to purchase 2000 and 2001 Buick Century models at local dealerships around the country.
"This is a tremendous milestone in the history of Mercata, which showcases the ability of our group buying model to drive tremendous sales for our We-Commerce(TM) Network partners, such as Buick," said Tom Van Horn, founder, president and CEO of Mercata. "Our customers asked for group buying of automobiles, and we and General Motors delivered."
The viral promotion attracted consumers from across the country, drawing new customer bases for both Buick and Mercata. Mercata statistics show that more than 60 percent of those who took advantage of the PowerBuy didn't currently own a Buick. The PowerBuy generated a broad range of interest because people encouraged their friends and family to participate in maximizing their savings on the vehicle.
"Mercata's Dynamic Rebate solution provided Buick with a new Internet marketing tool that allowed us to directly interface with customers while supporting our local dealer network," said Roger Adams, general manager at Buick.
About Mercata
Mercata, Inc. is a leading provider of Internet-based group buying services. Using its PowerBuy(TM) group purchases and We-Commerce(TM) technology, it provides partners with hosted group buying services through Mercata's We-Commerce(TM) Network (http://www.we-commerce.com). As Network partners, manufacturer, retailer, portal, and community Web sites offer merchandise for sale using Mercata's patented and patent-pending business methods and technology. Mercata's online retail store (http://www.mercata.com) allows individual customers to purchase high-quality, brand-name merchandise in a group-buying format. PowerBuy group purchases and the We-Commerce Network are powered by Mercata's proprietary business methods and technology. Founded in September 1998, Mercata(TM) is a privately held company with funding from Vulcan Ventures Inc., Highland Capital Partners, Global Retail Partners, Europ@web, Amerindo and other investors.
About Buick Century
Buick, a division of General Motors, has been an Internet leader among automotive marketers. Among Internet "firsts" for Buick's Web efforts:
| -- | Launching the 1997 1/2 Regal online. |
| -- | Offering a $500 purchase incentive in connection with GM's |
-- Making a gift certificate available for redemption at Amazon.com for test driving any new Buick.
-- Holding a promotion -- titled "Click to Win" -- that offered up to 45 new Buicks over a 45-day period for consumers who printed out game pieces from buick.com and matched key words at local dealerships to determine prizes.
Buick's Century -- which took over as Buick's leading seller in 1999 -- is billed as "A Luxury Car for Everyone." Century offers the comfort, room and amenities expected in a luxurious family car at an affordable price. Standard features include traction control, dual-zone ComforTemp climate control, remote keyless entry, daytime running lamps and power windows, door locks and remote trunk release.
"Mercata," the Mercata logo, "We-Commerce," the We-Commerce Network logo, "PowerBuy," "Share the Power," "Buying Power to the People," the Power Swirl design and "The Power of We" are trademarks of Mercata, Inc. All other trademarks are the property of their respective owners.