Price and value is what led Chris Gafoor to purchase a press release distribution plan from GroupPrice.
“It gives you more bang for your buck,” said the president and CEO of Miami-based BluStar Media Inc, who paid $39 for a GroupPrice deal that he estimated would have cost $200 elsewhere. The deal guaranteed Gafoor’s company a minimum of 5,000 views of its press release in 30 days.
GroupPrice is a business-to-business version of the group-buying trend that offers deals specifically for Internet-based small businesses. Van Jepson, CEO of the Redwood City, California-based firm, got the idea for the business when he ran a previous Web company.
“I was trying to grow the type of online services that were offered to our members, but I didn’t have enough resources,” he said. “So I had to reach out to outside suppliers, local service suppliers and office suppliers to find solutions. I realized that this was a problem that all Internet-centric companies have.”
Jepson initially funded the website with $30,000 before attracting five investors. GroupPrice subsequently attracted $285,000 of funding. The startup closed its first seed investment last July.