After his menswear business "took it on the chin" when the economy went sour, Shawn Harris was approached by fashion websites such as BuyWithMe and Gilt City that offered to promote his clothes, but he demurred.
They would have slashed his prices by half right from the outset, he said, and then he would have had to split the profits with them.
"I felt there had to be a better way," said Harris, 37. "I thought, 'What if I let the consumer tell me what they're willing to pay, and I give them a reward?'"
That seed of an idea grew into Nyopoly, the women's fashion business that he founded in Boston in 2011 and that will compete against 127 other MassChallenge finalists from around the world on Oct. 30 for a share of $1 million in prize money.
Since the website went live 11 months ago, it has registered 3,000 members, who negotiate for current-season clothes, shoes and accessories ranging in price from $65 for a pair of small-brand ballet flats to $1,300 for a Prada bag.
Members can make up to three offers on any item and receive an answer in seconds. If their first offer is accepted, they get a 20 percent cash-back credit to use toward a future purchase. If their second offer is accepted, they get a 10 percent cash-back credit. And if their third is accepted, they get only the item — but at the discounted price they offered.
If that offer is rejected, they can either pay full price or wait 48 hours to make a new round of offers on the item. In the meantime, they can still negotiate for other Nyopoly goods.
Harris can afford to use all this haggling as a business model because he buys goods at wholesale either directly from the brands or through distribution, he said.
"It beats going to the store," said Stacie Calixte, 35, of Brockton, who's bought about a half-dozen things from Nyopoly since she first heard about the site from her mother in January. "It's more convenient, and it gives you more flexibility than sites that say, 'This is our price; take it or leave it.'"
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