INDIANAPOLIS - Angie's List, a referral site for cabinetry, carpentry and home remodeling services, cut consumer membership fees to just $10 a year, in a test effort to gain more users. The test backfired for Angie's List, as the site's stock tumbled.
The unannounced test jarred investors. As word of the price cuts spread - the drop from $40 to $10 was reported Oct. 3 in the Wall Street Journal - the membership pricing returned to its original level.
Angie’s List collects consumer reviews in more than 720 service categories, Hardwood Flooring, Flooring Refinishing, Garage Doors, Carpentry - Unfinished, Carpentry - Woodworking, Drywall, Doors, Countertops and Cabinet Making. Angie's List top rated cabinet makers and remodelers were featured in the June issue of Custom Woodworking Business, "America's Best Rated Custom Woodworkers."
Angie's List CEO William Oesterle told the Journal, "We have a reduced-price test running in several markets...and are trying to understand the impact on member acquisition and retention." The company has been trying to grow its consumer member base as it seeks to improve its online marketplace - seeking to have consumers pay for services through Angie's List, which would in turn pay the service provider.
Angie's List second quarter SEC filing noted record levels of new members and service provider revenue, including revenue from advertising contracts and fees from e-commerce transactions --up 76% and 44%, respectively.
In a move to beef up it's ability to offer consumers a full-service experience in remodeling, Angie's List acquired the home improvement online firm BrightNest in August for $2.65 million.
BrightNest Co-Founder and CEO Justin Anthony says the website helps "make it even easier to hire local service providers."
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