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Learn More About Group Buying and Coupon Deals

Groupon is a singularly successful group buying website. It doesn’t merely publish online coupons that the sellers of products might care to put out. It creates an opportunity for the seller of a product that allows the seller to offer deep discounts – ones that go up to 50% – in return for a promise by Groupon that they will run the deal and collect hundreds (or thousands) of customers for the deal to help make it worth the seller’s while to run such a deep discount. The seller moves more product than ever before and customers get a way to band together and leverage the negotiating muscle that a group can have. The name Groupon is everywhere now and Google even offered to buy the company for billions of dollars. The question is though, how on earth did GroupOn pick up a coupon deals concept that had been tried, that had failed and that had been given up on a dozen times before (websites like MobShop and LetsBuyIt) and still make a roaring success of it? There are businesses roping in tens of thousands of new customers each, every week. Without doing a scrap of marketing ever. Customers easily save 50% off on valuable purchases like books, massages, travel, food or anything else. And Groupon gets to keep half the money it manages to save for a customer.

Groupon does a roaring business in nearly 200 cities in North America and hundreds of others all around the world. Going by the statistics published on the website, they’ve managed to save their tens of millions of customers a combined $1.5 billion so far. In fact, no other business in the history of the Internet has ever made it so quickly. How did it manage this? Perhaps it succeeds because it actually puts experienced local marketing staff on the street in every city and tries to get them to find the kind of coupon deals that the local population really will appreciate. In Miami for instance, people are more likely to be interested in cruises, dancing and shopping for clothes. In Connecticut, they are likely to be interested in discounts on music lessons for children, in books and restaurants. In New York City, theater tickets and art galleries are likely to do well. And no matter what city you look at, you get lots of deals for plastic surgery for the well-to-do women who happen to be a part of any community.

Saving 50% off new books, other restaurant bill or off a car rental – all of this is stuff you want to do anyway. But $10 or $20 off a purchase isn’t really such a big deal; why do people react to it with unfettered joy? It’s just some kind of psychological thing that people can’t resist. And Groupon markets the idea that special way to appeal to your hankering for an exclusive. There are a limited number of online coupons each day – and you always wish that there is something that you can use. And then of course, these aren’t just deals you can pick up and cash in on at any time. A deal only becomes real if enough people sign on. There’s always a wait before you know that enough people have come on board and the deal will go through. There is a great deal of satisfaction in knowing that you bet on something and it came through. And best of all, it’s a very simple deal, all of it. Unlike the 50 cents or $1 savings you get on regular online coupons, you save tens of dollars on these deals. Group buying really is the trend of the future.

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