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.
The idea is simple. Get a bunch of people together that all want to buy something and negotiate on behalf of the group for a better price than they could have individually transacted. A GroupOn deal goes a little something like this:
GroupOn negotiates the dealio with the seller.
GroupOn put the word out about said dealio
People on GroupOn sign up for the aforementioned dealio if they are interested
If enough people sign on to the dealio...GROUPON! Consumers get the dealio and the seller gets lots o' new traffic. Win-Win!
The current Los Angeles dealio is a $45 value paintball package for $25. As of this writing 68 people have signed up with only 20 needed to activate the dealio so it is GROUPON for paintball. All 68 people have now been charged and will get their dealio. You have to provide the billing information to sign up and when/if it gets activated you are charged.
I was a bit worried about being charged. What if the schedule didn't work for me? No worries. The paintball deal isn't for a specific day or time, you can use it at a time that is convenient to you.
Since the site is based in Chicago, I think the best and most frequent deals are to be had there. I've tracked the Los Angeles site for a couple of days and the same deal is featured so maybe they are just getting up and running here. The site claims "daily deals" so hopefully that is where they will ramp up to.
This is a great use of the Internet and a little bit of business savvy and I'm certainly rooting for them!
* Please note: I am aware that "dealio" is not (yet) in the English dictionary. It is a "JD-approved" enhancement to the real world contextual language.
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!
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 … 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 ...