New group-buying site Incahoot wants to be known as the value brand for essential household bills
Launched in January, Incahoot uses the collective buying power of its members to negotiate deals on household bills, including utilities, phones and broadband. Its key difference from other similar sites is that members save money on essentials rather than luxuries.
"We want people to think of us in the same context as Moneysupermarket or Go Compare. We want them to think, 'I'll see what Incahoot has to offer because it's normally better'," says chief executive John Evans.
The business operates on a commission per sale basis. It negotiates the best deal in the marketplace and takes a share of whatever is left. Membership is free. To date there are 10,000 members, a figure Evans hopes to grow to 250,000, with £3m revenues, by the end of this year.
The biggest challenge for Incahoot has been sealing supply deals before it has attracted members. "It's chicken and egg. If you have lots of members you can get deals and if you have lots of deals you can get members," says Evans.
If he has learnt one thing it's to absolutely think your business through before facing potential partners or clients. "As the business owner you know the questions you don't want to be asked – so get the answers to those," he advises.
"It's taken us a bit longer than we thought it would to get to market, but we're in much better shape having taken the extra time to work through all the obstacles we could come up against."
