Former Orbitz CEO Takes on Comparison Shopping Site

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Nov. 6 (Bloomberg) -- Price Machine CEO Jeff Katz discusses the company's comparison shopping site and what he learned from taking a company public. Katz is the former CEO of Orbitz. He speaks with Mark Crumpton on Bloomberg Television's "Bottom Line." (Source: Bloomberg)

Machine.

He joins me from san francisco.

Welcome to "bottom line." thank you for having me.

Before we get to price machine, i have to get your reaction to twitter pricing its ipo.

Is the timing right?

Based on the increasing price range and a lot of places it looks like a good time to get that stock public to me.

You helped take orbitz public.

What is the process like?

The risks and rewards as you prepare to take a company public -- is there anything you would have done differently?

There probably is an infinite amount of things.

There is an extraordinary amount of detail.

Ultimately, you want to go public when there is the demand for your business.

When your people and your company is ready to meet expectations, i would say that is the most important thing.

Anything you would have done differently looking back?

I think looking back, we did a lot of things right with the launch of orbitz and the public offering.

It was a good story.

It was very fast.

We built the company in a year.

We went public in about 2.5 years later.

It was a great experience for everybody involved.

Let's talk about price machine.

How does it work and how does it differ from google?

Google is a search engine.

So google, their model is all about advertising and that is very prevalent for all of us who live and breathe and use google every day.

Price machine is for comparison shoppers, people who want to save money.

It is the only site out there that shows the fair price.

It is the only site out there that is unbiased.

We don't miss anything based on what we get paid.

What do you believe in internet comparison shopping making money from advertising?

It seems counterintuitive.

Hundreds of millions of people compare prices before they buy.

We know that two to five websites are used by every shopper when they are looking for something.

Nobody feels like they are getting the right price.

By having an unbiased site where you can always see the fair price, we think people will feel more confident before they buy.

Is that more important given the economic climate we find ourselves in and consumers by and large still, even though they might feel more comfortable sending their money, they are looking for a bargain.

They are.

We often talk about the one percent, but the 99% are out there shopping everyday.

These are people who want to save money on refrigerators, socks and that is what price machine is all about.

What type of feedback have you been getting?

We are just launching the website literally today.

We will start brand advertising tomorrow.

The initial feedback is really good.

The site has already been operating in beta mode for four to five months.

It will be quite large from a revenue perspective.

It is even profitable already which is unheard of for startups.

Are consumers aware by and large that they are usually overpaying for items online?

Most people have a feeling that they didn't get a good deal , that they are underinformed and maybe they got taken.

They have a sense but they don't have the facts and price machine's orientation around the fair price is meant to help people know and feel better when they buy.

How much of your strategy as founding ceo of orbitz are you using now?

What are the similarities between price per gene and orbitz in how you target potential customers?

There is a lot of similarities.

First and foremost, we want to have a great product.

We spent a lot of time focused on what users need.

We are launching with a clear view that comparison shoppers want to know a lot about the data, the fair price.

They want to know about timing.

They want to set a radar to track what is happening.

All these techniques are very similar to what we used in the machine, i have to get your reaction to twitter pricing its ipo.

Is the timing right?

Based on the increasing price range and a lot of places it looks like a good time to get that stock public to me.

You helped take orbitz public.

What is the process like?

The risks and rewards as you prepare to take a company public -- is there anything you would have done differently?

There probably is an infinite amount of things.

There is an extraordinary amount of detail.

Ultimately, you want to go public when there is the demand for your business.

When your people and your company is ready to meet expectations, i would say that is the most important thing.

Anything you would have done differently looking back?

I think looking back, we did a lot of things right with the launch of orbitz and the public offering.

It was a good story.

It was very fast.

We built the company in a year.

We went public in about 2.5 years later.

It was a great experience for everybody involved.

Let's talk about price machine.

How does it work and how does it differ from google?

Google is a search engine.

So google, their model is all about advertising and that is very prevalent for all of us who live and breathe and use google every day.

Price machine is for comparison shoppers, people who want to save money.

It is the only site out there that shows the fair price.

It is the only site out there that is unbiased.

We don't miss anything based on what we get paid.

What do you believe in internet comparison shopping making money from advertising?

It seems counterintuitive.

Hundreds of millions of people compare prices before they buy.

We know that two to five websites are used by every shopper when they are looking for something.

Nobody feels like they are getting the right price.

By having an unbiased site where you can always see the fair price, we think people will feel more confident before they buy.

Is that more important given the economic climate we find ourselves in and consumers by and large still, even though they might feel more comfortable sending their money, they are looking for a bargain.

They are.

We often talk about the one percent, but the 99% are out there shopping everyday.

These are people who want to save money on refrigerators, socks and that is what price machine is all about.

What type of feedback have you been getting?

We are just launching the website literally today.

We will start brand advertising tomorrow.

The initial feedback is really good.

The site has already been operating in beta mode for four to five months.

It will be quite large from a revenue perspective.

It is even profitable already which is unheard of for startups.

Are consumers aware by and large that they are usually overpaying for items online?

Most people have a feeling that they didn't get a good deal , that they are underinformed and maybe they got taken.

They have a sense but they don't have the facts and price machine's orientation around the fair price is meant to help people know and feel better when they buy.

How much of your strategy as founding ceo of orbitz are you using now?

What are the similarities between price per gene and orbitz in how you target potential customers?

There is a lot of similarities.

First and foremost, we want to have a great product.

We spent a lot of time focused on what users need.

We are launching with a clear view that comparison shoppers want to know a lot about the data, the fair price.

They want to know about timing.

They want to set a radar to track what is happening.

All these techniques are very similar to what we used in the early days of orbitz.

Later, one of our competitors, kayak.

Jeff katz is the ceo of the

This text has been automatically generated. It may not be 100% accurate.

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