INTERNET–Web Site Aims to Compare Small Shops

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Online comparison shopping is hardly a new niche. It’s already crowded with such companies as New York-based DealTime, with 3.5 million registered users, and Santa Clara-based mySimon, with 1.4 million users, according to PC Data.

But those well-established sites are focused on allowing shoppers to comparison shop the major national chains.

Local real estate developer Emil Fish and his son, David, plan to bring that service to L.A. mom-and-pop stores by launching a Studio City-based site, AllPlaza.com, on June 1. It will enable L.A. shoppers to comparison shop among local independent retailers.

Shoppers can search for products by typing in a zip code along with a key word or phrase related to what they want to buy, and the site will generate a list of local stores carrying that product, along with prices.

AllPlaza will charge each store a $100 set-up fee, and a $25 monthly listing fee.

“We want to be a bargain hunters’ paradise,” said Chief Operator Will Bernstein.

While bargain hunters may enjoy having a more-localized online price engine, small retailers will also benefit by getting a presence in cyberspace at a fraction of the cost of implementing an e-commerce strategy of their own.

Among the 115 local merchants that have signed on with AllPlaza so far is Harry’s Camera & Video in Studio City.

“We’re looking for another source of customer contact to build awareness,” said Dusty Rhodes, co-owner of the business. “I don’t have the time and ability to set up my Web site. I would need someone’s expertise, and this seems like the way to go.”

AllPlaza isn’t limiting its service to local independent stores, however. The company has established about 100 affiliate programs with such e-commerce giants as Office Max, Amazon.com, eToys and CDNow. If any of these online retailers make a sale through AllPlaza, the company gets a commission of 5 to 20 percent.

In addition, while the site will initially only feature independent stores in the L.A. area, AllPlaza plans to roll out a service to include merchants in New York, Chicago, Seattle and San Diego in July.

AllPlaza is also entering into strategic partnerships. For instance, the company has entered a deal with national coupon distributor Val-Pak to list its coupons on the AllPlaza site.

Reaction from industry experts is mixed. Some analysts say the site has promise, but others are more skeptical.

“Quite frankly, I’m not too excited about it,” said Martin Goslar, principal analyst and managing partner of Phoenix-based E-PHD.com, an e-commerce strategic consulting firm. “The big companies out there don’t need AllPlaza, and the small ones don’t have much money to offer them.”

Cameron Meierhouefer, an analyst at PC Data, was more bullish.

“People are interested in getting the best bet for their money, and if AllPlaza can provide that novel service in a person’s backyard, people may be interested,” Meierhouefer said.

AllPlaza is the brainchild of a father-son team, who raised $700,000 in seed capital from relatives and friends. (They plan to pursue venture capital funding later this year.)

Neither was available for comment last week.

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