An even more fundamental question looms. Mr. Walker counters that legions of coupon-clippers already spend hours hunting for grocery bargains by combing local newspaper inserts. Sara Zeilstra, an analyst at Warburg Dillon Read LLC, believes WebHouse will be a more attractive option because users can proactively seek out the discounts they want. Grocery store owners won't be asked to take a hit on profits to join the WebHouse system. Instead, manufacturers will reimburse stores for the difference between the full store price and the discounted price customers pay online.
Active customers pay a three-dollar monthly handling fee.
Mr. Walker says he isn't prepared to name participating manufacturers right now. But in some cases, he adds, if manufacturers aren't willing to meet a customer's price, WebHouse itself may pony up the difference in order to ensure a variety of choices. Some supermarkets believe WebHouse has the potential to offer customers deals comparable to those available in warehouse-style stores, without requiring people to buy in bulk. The company hopes to expand its service nationwide by the end of 2000. Some of the them are licensed from Priceline, to which WebHouse will make royalty payments, while others come from Walker Digital Corp., a closely held intellectual-property firm, also of Stamford, that created Priceline.