Alphabuyer is opening an office and expanding in Pittsburgh, joining the group buying frenzy with deals on some of life’s most basic needs, beginning with the monthly utility bill.
Based in Paoli, outside of Philadelphia, in 2010, Alphabuyer is among the first companies in the state to capitalize on the deregulation of the utility industry through group rates on non-discretionary items such as gas and electric, says Kevin Johnson, founder and president. The firm, is expanding to Pittsburgh first and plans to move on to New York, New Jersey, Maryland and Illinois this year.
“Right now the consumer doesn’t have an adviser or advocate fighting on their behalf,” says Johnson. “We’re the consumer advocate so they can secure the best pricing in terms of the marketplace. This (group buying) is big; it’s the future.”
Alphabuyer is considering office space in the Bakery Square area and plans to hire 15-30 software engineers in the next two years.
Like most collective buying plans, AlphaBuyer offers a higher discounted rate on monthly services based on how many customers buy in. Buyers agree to a locked in rate on utilities for two years (the current offer to Duquesne customers promises a 21.4% savings). Your utility company and billing won’t change, only the price that you are paying for energy, says Johnson. AlphaBuyer hopes to expand the offering to cable, insurance, mortgages and car purchasing.
The overall savings may be anywhere from 5-15% to 40-50%. Our objective is to cut bills, such as cable, in half, he says. With higher utility prices projected down the road, the two-year fixed rate will save electric customers between $100 and $200 a year in the Pittsburgh market.
It may take awhile for it to catch on, but similar programs are already succeeded in other regions, especially Texas, he adds. Alphabuyer currently has 2,136 customers in Philadelphia.
“Once the consumer switches and enrolls, that’s as much work as they have to do. We secure the discount; we become the trusted adviser. We only put deals up that make the most sense. “
Source: Kevin Johnson, Alphabuyer
Writer: Deb Smit
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