I am not much of a consumer. This is an extreme understatement. Simply put, I despise shopping. The mention of the term “outlet mall” strikes fear into my heart, and I am convinced that just walking into a department store can cause me to break out in hives or experience shortness of breath. My girlfriends stopped inviting me on their shopping excursions years ago after tiring of my persistent whining: “I’m hungry. It’s hot in here. I’m tired. I’m bored. Why is everyone walking so slowly? Can we go home now? Are we done yet? What are you guys even looking for? You’re gonna pay THAT much for THAT?!?” Irritated and perplexed, they would just look at me as if I were some sort of extra-terrestrial alien who could not possibly understand the fine art of shopping.
Okay. I’m not exactly a big spender but I am a very enthusiastic saver. Even my friends will admit that few can rival my master bargaineering skills. I can smell savings from miles away. So when I came across my first social buying website, my heart sang and the adrenaline started to flow. It seemed too good to be true.
What exactly is social buying? Social buying (also known as social shopping and collective buying) is one of the latest trends in the Web 2.0 world. Social buying websites harness the power of consumer numbers via the internet, in order to get the best deals for everyone. How does it work? The details of the process differ from site to site, but the gist is always the same. Each day these social buying websites will post one deal to a local business. The deals are deeply discounted (usually between 50% and 90%) and pertain to a variety of things such as dining, accommodations, entertainment, spa and beauty treatments and more.
So what is the catch? Well, the most obvious catch is that the deals are daily. Once midnight strikes, you have lost out on your chance to get the deal of the day (technically, but we will come back to that). The other caveat is that each deal requires a minimum number of people to purchase that day’s coupon, before the deal becomes legit. This minimum number varies. This is one of the details that varies from site to site; I usually see it set at 50 or 100. LivingSocial adds an incentive: Once you purchase a deal, LivingSocial sends you a link to that deal to send to friends. If three friends use this link to purchase the deal of the day, then your deal is free. These websites also allow you to give the deals to others as gifts.
My sister recently purchased a spa deal from Groupon. For $45 she got a 50-minute arnica and rosemary muscle melt massage at Lux Spa in Philadelphia. I have no idea what arnica is; however, I do know that without the Groupon the massage would have costs her $100 (and I also know that, as a broke college student, she does not have $100 to spare.) As suggested, she arrived early for her appointment so that she could relax and enjoy the spa’s pool and jacuzzi before her scheduled massage. When I saw her after her massage, she was glowing. I am sure that this was partially due to whatever muscle magic her masseuse had been able to work, but I think the fact that she had just saved $55 also contributed to the extra little spring in her step.
Recent deals on these websites have included $79 for a teeth-whitening treatment ($199 value), $99 for auto detailing ($260 value), $40 for 1 Month of Martial Arts classes for kids ($120 value), $49 for a 3-hour dinner cruise ($99 value), $10 for $20 worth of food and drink at Baja Fresh, $40 for $80 worth of food and drink at an upscale French restaurant, and many more deals. I recently purchased 2 deals: $39 for a 60-minute massage and foot scrub ($90 value) and $30 for three Bikram Yoga classes ($60 value). As many of the deals do have certain stipulations (i.e. – must use the voucher within a year or a voucher may not be used on holidays, etc.), I recommend reading the fine print. For those of you who are prone to compulsive shopping, you do have a bit of a safety net. These websites do let you cancel your purchases and will refund your money, up to a certain date. As social buying has become bigger, a new market has emerged. Perhaps you are feeling a bit of buyer’s remorse or something came up and you can no longer use your deal voucher before its expiration date. For websites which allow you to sell your socially-bought deals, head over to CoupRegroup and DealsGoRound. Such sites also offer others the chance to buy an earlier deal which they missed out on.
On the flip side of things, these websites offer a new and dynamic advertising option for local businesses. By offering even one deal a month through such sites, a local business can increase its revenue, potentially win over a lot of new clients and gain a ton of exposure. The websites usually process payments within 24 hours, which means a quick and large paycheck for the local business of the day. And, of course, not everyone who purchases a coupon will remember to use their deal vouchers, which means even more money for local businesses. Reportedly, some companies are getting so much new business through social buying avenues that they are having trouble keeping up with demand. I have seen a number of deals which have been purchased by hundreds, and often even thousands, of customers!
The popularity of social buying sites has grown so rapidly that it is not uncommon for me to overhear people talking about today’s “deal” as I walk around campus. Groupon has even challenged one man (Josh Stevens) to live off of nothing but Groupons for 365 days. Josh has received a good amount of press, including an appearance on the Today Show.
While I am not generally one to jump on the bandwagon, I feel comfortable riding this one all the way to the bank. I have given a few of these social buying vouchers as gifts and they were very well received. It is also nice to be able to treat myself every now and then to things I would not have been able to afford otherwise. Thus, proving to my friends that I am, indeed, able to enjoy some of the finer things in life… when they are 50% off!
Social Buying Sites
There are a number of these websites now, but here are some of the more popular ones.
Groupon (http://www.groupon.com)
Available in over 70 U.S. cities, Canada, Mexico and over 15 European countries.
LivingSocial (http://livingsocial.com)
Available in over 45 U.S. cities, London, Toronto, & Vancouver.
SocialBuy (http://www.socialbuy.com)
Available in over 45 U.S. cities.
BuyWithMe (http://www.buywithme.com)
Available in Boston, Philadelphia, San Diego, New York City & Washington DC.
Buyer’s Remorse?
CoupRecoup (http://couprecoup.com)
Available in Atlanta, Boston, Chicago, Denver, New York City, Los Angeles, Phoenix, San Diego, San Francisco, & Seattle
DealsGoRound (http://www.dealsgoround.com)
Available in over 40 U.S. cities.