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Bargain hunters find a new way to save By Kara McGuire
http://www.JewishWorldReview.com | (MCT) I never thought it would happen, but your frugal columnist is suffering from coupon fatigue. Coupons are everywhere in this economic downturn — in your newspaper and your in-box, on Facebook and on your cell phone. So when I learned that Groupon.com was a coupon site, I thought "Another one?" But Groupon.com puts a new spin on saving that's caught the attention of venture capitalists and users alike. Since its October launch in Here's how it works: Groupon.com offers up a single deal per day that becomes valid only when enough people decide to buy in. Consumers drum up support for the deals using Facebook and Twitter to make sure the magic number is met. If the deal goes through, and the vast majority do, your credit card is charged, and you're e-mailed a print-out coupon to use. If the deal fails, as about one in 50 do, your card is not charged. Since its launch 15 months ago, the company has sold 1.2 million Groupons, saving users more than Most of the businesses featured are small and locally owned. Offers tend to have a social component — dining with friends, working out, trying a new activity such as roller blading or singing lessons. And if you're planning a trip, you can head to Groupon for discounts as well as research on where to eat and hang out in your destination city. Founder
Still, there are some restrictions. I was planning to use part of a Groupon for a brow wax and save the rest for a facial, but learned that the entire Groupon must be used on one visit. Taxes and gratuity aren't typically included and you usually can't buy an unlimited amount of one deal for yourself. Merchants work with Groupon to design unique deals, so details vary, and reading the fine print, as usual, is recommended.
But Mason is convinced that the limited nature of the deals cinch Groupon's success. Too many options, he reasons, and finding discounts "almost becomes work." Make it too hard and when the economy takes off, so will coupon users. Groupon takes 30 percent to 50 percent of each deal sold. Merchants get the rest of the cash earned from the deal, new customers and a whole lot of exposure. The company is on track to make more than Other entrepreneurs are launching similar concepts, including
"For me it was just a really quick way to spread the word about who we are in a really short amount of time with no upfront cost," Greeman said. Think about it: E-mails go out to 43,000 people announcing the deal, friends share it on Facebook, followers retweet it on Twitter. Even if people didn't buy the Groupon, "there was potentially 100,000 people inside of one day that had Spill the Wine come across their in-box," Greeman said. And the restaurant received a The downside? She's comping a lot of food. The deal was to spend
Garber takes advantage of a deal two to three times a week. "I would hate to see that total bill, but I love getting that bargain." Every weekday JewishWorldReview.com publishes what many in the media and Washington consider "must-reading". Sign up for the daily JWR update. It's free. Just click here.
Kara McGuire is a columnist for the Minneapolis Star Tribune. Comment by clicking here. © 2010, Star Tribune Distributed by McClatchy-Tribune Information Services |
Arnold Ahlert | |||||||||||
