We're trying to make connections with consumers and not market our products based on price. He adds that with time, he felt he could have lined up enough customers to convince the manufacturers to give him discounts. Still, WebHouse Club faced resistance from large gasoline marketers as well as the consumer-products companies. Club says it only allowed one gas station for each regional area, which ranged in size from five to 10 miles. Club's gasoline program because the company didn't think consumers would use it.
Gasoline is partly a convenience purchase.
On average, WebHouse Club subsidized about 15 cents per gallon, while the gas station picked up another six to 10 cents per gallon, Mr. Walker says. Soon after, Priceline announced disappointing third-quarter results. The company has been slapped with two class-action lawsuits this week, which allege that Mr. Walker and other insiders sold shares while knowing that the company would do poorly. Mr. Walker denies the allegations and says he invested all of the proceeds of the sale into WebHouse Club. Club's but has had better success, such as convincing airlines to offer discount tickets, partly because many of the airlines own warrants in Priceline.