I’m always finding out about sales the day after they end. Typically, I’ll be walking into a restaurant on a weeknight only to find out that yesterday, the same meal was being offered at half the price. Or, even more often, I’ll be scrolling through all the spam in my inbox when I finally have a second on a Thursday, only to discover that the 40% off coupon from Borders was only for Tuesday and Wednesday and the $200 off coupon from Travelocity expired Wednesday at 11:59p! Forget cleanliness being next to godliness, it’s definitely timeliness.
Then I came across Groupon.com. It’s a website with a simple concept: if enough like-minded bargain-hunters “group” together and purchase a fantastic deal only available for that day – everybody wins! And the deals are ridiculous, usually somewhere between 33% and 70% off whatever the deal is that day. The only rule is that the quota of buyers has to be achieved to activate the deal. Think of it as an ebay auction, but instead of a minimum reserve price being met it’s a minimum number of bidders. And just to be sure, I’ve logged on to the site at 9:00a on three separate mornings and each time the Groupon was activated because enough people put their credit card down.
When you check out the site, sign up to receive daily emails which describe the new Groupon deal for that day. (I know, you’ve signed up for plenty of email deals already.) Groupon is a different story because every day’s email brings you a new, absurdly-priced deal. There is so much variety to the types of groupons that you begin to realize how many things you have put off because of the price. Haven’t gone out to dinner in a while? Oops, you have a Groupon for that. Haven’t learned how to play that guitar you’ve had in your closet for 2 years? Super, the Groupon today is for guitar lessons. The other Groupon offerings are just as eclectic: yoga lessons, dinner for two at various restaurants, bicycle tune-ups, and huge Travelocity discounts amongst many others.
You may select any location to see different Groupons (in case you’re traveling or want to purchase a Groupon for a family member back home). There are usually some restrictions depending on the Groupon, so be sure to read the rules. For restaurants, the groupon usually doesn’t include tax or gratuity. For other service-type deals such as lessons or massages, there is usually an “offer good until” date. But by and large, the groupons are such a significant drop in price that the fine print seems totally fair.
Just be sure to check the offer in the morning in the unlucky circumstance that the company has had to put a cap on the number of groupons because of its popularity. Seriously, sometimes the smaller companies receive so much business from one day’s groupon offering that they are fully booked for months (Hello marketers, this sounds like a brand building, new customer acquisition plan!). As I’m writing this a $105 wine club membership is going for $60, the groupon was activated at 8:30a and over 500 bargainistas have grouped-on to the deal! If this is the new capitalism, I’m all about it.
There’s a saying in Chinese, 团结是力量 (unity is strength). This is the concept behind the business model of the billion dollar company GROUPON. The site is now valued at some $6 billion after rejecting a buyout from Google last December. It’s been rumored that Groupon is on the road to an IPO for some $15 billion this year. So, with some $350-500 million annual revenue, what does this company has to offer to its consumers? In properties, … more
If you haven't bought enough over the Christmas & New Year or if you are a shopping addict, then this is the site for YOU! Otherwise, Groupon doesn't do much for someone who doesn't like shopping nor window-shopping. As a business, it is highly interesting. As a website, other than the technicality of a bidding "auction", I don't find it engaging. It does what it intends to do though & that's probably enough for its targeted audience & investors!
My mother once called me cheap. I informed her that this was impossible, because cheap people have the CHOICE about whether to spend money...I was actually, just broke. In my quest to not be broke, I've learned that besides increasing earnings, one must look at decreasing expenditures. On the flip-side, businesses need to market to new customers in a way that is cost effective for them. GroupOn has satisfied both needs in one website. … more
Groupon is a deal-of-the-day website that is localized to major markets in the United States. The first market for Groupon was Chicago, followed soon thereafter by Boston and New York City. As of November 2009, Groupon serves nearly 30 markets. Groupon debuted in November 2008 as part of The Point, a platform for collective action.
Compete.com cites Groupon as one of the top 1,400 sites on the Internet, with about one-third of its traffic coming from Facebook ads. According to quantcast.com, Groupon has 321,000 unique visitors each month and is one of the top 6,000 sites on the Internet. On July 1, 2009, Groupon rolled out a new website design.
The idea for Groupon was created by, now CEO, Andrew Mason. The idea subsequently gained the attention of his former employer, Eric Lefkofsky, who provided $1 million in "seed money" to develop the idea. The site launched in November 2008
The company offers one "Groupon" per day in each of the markets it serves. The Groupon works as an assurance contract using ThePoint's platform: if a certain number of people sign up for the offer, then the deal becomes available to all; if the predetermined minimum is not met, no one gets the deal that day. This reduces risk for retailers, who can treat the coupons as quantity discounts as well as sales promotion tools. Groupon makes money by getting a cut of the deal from the retailers (typically 50%).
Groupon focuses on unusual, special or niche things in each ...