Let's go Buyanihan

Patterned after the popular group buying websites in the US and Europe, Buyanihan.com is the Philippines’ first collective-buying site where real bargains on different goods and services are featured every week. It’s a low-cost Internet business tool that local businesses can use to pull in new customers.

If Buyanihan sounds familiar especially to Filipinos, it is a play on the word “bayanihan” which in English describes the Filipinos’ kindred spirit (collaboration, if you like) with one another.

Note the bold emphasis on the word “real" in the lead sentence. The emphasis is deliberate because the discounts are not your usual ‘10 to 30 percent less’ the normal prices.

The time-limited discount offers can go anywhere from not less than 50 percent and up, depending on negotiations between Buyanihan.com and the retailer.

So what will be the deals?

Hotel and restaurant meals, popular consumer items, tickets to themed parks and concerts, adventure tours, spas and other wellness services, flying or horseback lessons, you name it.

This new business model poses a new revenue stream opportunity for commercial establishments in that they can monetize their inventories especially during off-peak hours or their lean months when there's not too much demand for the items (or services).

The caveat is the deal gets the green light if the agreed minimum number of people sign up before the run-time (1 to 5 days) expires. And this is where the power of viral promotion comes into play. If consumers see the deal as a shared interest, they will feel compelled to pass on the information to their friends using traditional and social media - - word-of-mouth, email, Twitter, Facebook. Because if there are not enough buyers, sorry guys, the deal is off.

And the companies? They should be prepared at all times to welcome new customers at their doors.

Buyanihan.com is only available in Metro Manila but by the second half of 2011, it will expand to Cebu and Davao.