HNIs too look for discounts

And, there are websites that cater specifically to such clients, quite separate from e-commerce portals

Sample this. You are walking in a mall. A black Mercedes-Benz stops near you. The door opens and a pair of toned legs in stilettos step out. And, before you stands a beautiful being, high in class, rich in style and absolutely awe-inspiring. The tic-tac of her high heels enter a plush electronic store. She glances at the gadgets, fidgets with these, asks intelligent questions to the store manager. Then after having made a pick of a high-end mobile phone and a professional camera, she heads to the counter. Then, asks the store manager if she’ll get a discount for Akshaya Tritiya!

Unbelievable? But, wealthy, classy individuals also look for deals and discounts. This is where Purple Swarms, Power circle and quintessentially.com step in. These websites offer products like electronics, apartments, tour packages, air charters and wines, at lower than dealer prices (of branded products displayed in shops). The portal also bargains on behalf of its clients with vendors of high-end cars, consumer durables, airlines/portals and other wellness services.

Purple Swarms and power-circle together have a customer base of 60,000-70,000 high net worth individuals (HNI). Says Richa Karpe, director-investments, Alta-mount Capital, “HNIs bargaining while buying expensive items has become common. They like preferential treatment and always expect monetary gains against what they spend on valuables. Indian HNIs resort to online purchases for discounts on good brands.”

The average discount one gets through these portals can range between 20 and 40 per cent, depending on the item(s) purchased. But, these offers are available only for members. And, you can get a Purple Swarm membership only through invitation, though it’s free of cost.

As shown in the table, an air charter on rent would cost Rs 1.6 lakh for Purple Swarm members against Rs 2.4 lakh from a vendor. That’s a discount of 33 per cent. With summer holidays approaching, you could save on tour packages bought from these sites. Reason: An average tour costing Rs 85,000 elsewhere would cost you Rs 76,000 here.

These portals tie up with brands and generate their revenues from them without charging the customer. Simply put, these websites act as intermediaries. When individuals express interest in a certain product, the portal, on behalf of the customer negotiates a deal with the vendor. If the customer is happy with the price, he buys it. And, transacts directly with the vendor. But, there will be shipping charges included in the negotiated price.

But, these websites are not e-commerce portals. And, the responsibility of product delivery remains with the vendor, unlike in an e-commerce player, who is held responsible for any damage or delay in the delivery of the product.

Although e-commerce websites provide similar discounts, these portals get an edge in exclusivity of their products, which you won’t get on an e-commerce site. These portals mostly get just one or two high-end brands in a product category and try to get maximum discounts from these. For instance, they would get Tag Heuer and Tissot for watches or offer Honda bikes.

Nikunj Bubna, founder and CEO, Power Circle, says, “This line of business is completely different from what e-commerce websites offer. Our large customer base helps us get them group discounts on even the most expensive products. However, responsibility of delivery and payment on product remains with vendors, as our role is restrictive.”

Although payment is to be made directly to the vendor on delivery of the product, one should be careful to have some proof of the price negotiated by these portals, as there are chances the vendor may deny it in the absence of the mediator (portal).