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BuyerZone Enters the Black Zone
WATERTOWN, Mass., (November 14, 2002) - BuyerZone.com, the leading online business-to- business (B2B) marketplace and lead generation service, announced today that it reached profitability in the third quarter just three years after securing its initial venture financing. Third quarter results reflect a revenue increase of 77 percent versus the same quarter last year.
BuyerZone has achieved profitability through a transaction-based revenue model, differentiating it from companies with software licensing or advertising models. The company matches buyers and sellers through its Request for Quote (RFQ) toolset, to facilitate small business purchasing. In September alone, 40,000 purchase requests were secured. BuyerZone's strategic partnerships with leading print media, online business portals such as Yahoo! (NASDAQ: YHOO), and Fortune 500 product and service providers have all contributed to its industry leadership.
"In this difficult economy small businesses have to maximize the value of every activity they manage. Our content and purchasing toolset are more important than ever because of the time and cost savings they provide," said President Sam Zales. "BuyerZone is using the Internet to enable thousands of leading national and local businesses to succeed and grow by using our service."
Founded in 1992 as an offline content company providing small business purchasing advice, BuyerZone made the move to an online marketplace in 1999 offering a free service for small and mid-sized businesses to receive competitive quotes on a broad range of products and services from qualified national and local vendors. Its marketplace now covers 100 product and service areas from office and telecommunications equipment to benefits and Internet services. Purchasers receive quotes from leading national and local suppliers including Automatic Data Processing, Inc. (NYSE: ADP), Covad (NASDAQ: COVD), NEC Corporation (NASDAQ: NEC), Paychex (NASDAQ: PAYX), and Pitney Bowes Inc. (NYSE: PBI).
"This is a milestone most Internet companies strive for," said investor Mike Fitzgerald, General Partner of Commonwealth Capital Ventures. "BuyerZone demonstrates the focused strategy and execution of business planning that generates the ultimate customer satisfaction. We're exceptionally proud of BuyerZone's accomplishments."
Deloitte & Touche "Technology Fast 50 Award"
In September 2002, BuyerZone was awarded the prestigious Deloitte & Touche "Technology Fast 50" honor for New England, a ranking of the 50 fastest growing technology companies in the area. Rankings are based on the percentage of growth in fiscal year revenues from 1997-2001. BuyerZone grew an astounding 2,553 percent in that time period, to place thirteenth on the list.
Company founder and VP Strategic Services, Mie -Yun Lee credits BuyerZone's success to its unwavering focus on customer satisfaction. "BuyerZone delivers a technology that helps small businesses purchase more effectively and complements the purchasing advice we have provided since the company first began," Ms. Lee said. "The Internet has provided a strong distribution channel for our company to deliver the tools our customers need, and this award reflects the commitment we've made to them."
Expands Product Offerings via New Partnerships
Recent expansions into product and service categories including business loans and leasing, freight shipping, LCD projectors, and teleconferencing services have led to strategic partnerships with leading companies such as BAX Global, CIT Group (NYSE:CIT), InFocus (NASDAQ:INFS), InterCall, and Mitsubishi. "In our industry, it's becoming increasingly difficult to develop qualified leads," said Jeff Harvey, National Director of Sales for teleconferencing services company Glyphics Communications. "BuyerZone.com has been a valuable tool for developing relationships and new channels. Since becoming a BuyerZone partner in April 2002, we have experienced a 20% lead-to-close ratio in a heavily-contested market."
About BuyerZone.com
BuyerZone.com is the leading online marketplace, combining the premier internet-based Request for Quote service with original award-winning purchasing guides and research to serve the needs of small business owners. The site delivers a guided buying experience that empowers customers to easily evaluate and quickly make the right purchases for all their business needs. BuyerZone.com has a vast network of national and local suppliers covering more than 100 types of critical business purchases ranging from 401(k) plans to telephone systems. BuyerZone.com is a privately held venture backed company whose investors include UBS Capital, BancBoston Ventures, Commonwealth Capital Ventures, Flagship Ventures, and Women's Growth Capital Fund. BuyerZone.com is accessible at http://www.buyerzone.com and through leading small business portals on the Internet.
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