Since its launch in Nov. 2008, Groupon.com has grown to become a phenomenon – both in the business world and among people searching for a steal.
Groupon.com uses the power of a group to get products and services at a 50- to 90-percent discount for its users. The discounts can be on anything from salon and photography services to deals at restaurants.
In order to be valid, the Groupon discount must reach a tipping point. The tipping point is the amount of people that must buy the Groupon in order for the retailer to make the discount valid. The tipping point is different for each discount.
Groupon offers Phoenix deals, and a separate venue for Scottsdale deals is on its way.
Groupon expanded rapidly. In less than two years the company has gone from seven employees at their headquarters in Chicago to 2,600 employees worldwide. Although Groupon has grown steadily since its inception, the company hit its stride in 2010, says Julie Mossler, Groupon spokesperson. In August, Forbes Magazine named Groupon the fastest growing company ever, Mossler says.
Harnessing Groupon’s power for your business is easy, Mossler says. The company started GrouponWork.com to help businesses learn how to work with Groupon. The site provides case studies on Groupon’s success and tips on how to successfully structure deals.
Dolce Salon & Spa is one Phoenix-area business that has taken advantage of the new marketing potential behind Groupon’s deals.
Dolce has offered two deals through Groupon.com and has seen a big return from it, says Dynelle Rodriguez, spokesperson for Dolce Salon & Spa.
Rodriguez said Groupon called them and suggested they strike a deal. The opportunity to market the salon and spa in a unique way intrigued her, she said.
Each day Dolce has a customer using a Groupon discount, Rodriguez says. Although the result has been greater than the company expected, Dolce isn’t looking to do another Groupon discount in the near future because of the long expiration dates on the company’s Groupons, she says. However, Rodriguez says she recommends Groupon to all businesses she deals with.
If you want to use Groupon for personal use, Mossler offers a few tips.
1. Let the excitement die down and wait a week before using the Groupon.
2. Tip on the full amount of the Groupon to thank the business for offering such a great discount.
3. If there are any problems, even if the merchant is the problem, give Groupon a call.
4. Connect with Groupon’s individual cities on Facebook or Twitter. Example: @GrouponPhoenix and facebook.com/grouponphoenix
In the future, Groupon is hoping to customize its bargain offerings even more than the gender- and location-specific deals the company currently offers.
If you think Groupon is going to save you tons of money, meet Josh Stevens, the Groupawn. He is living solely off of Groupon’s coupons for one year – and he applied for this job. He has to barter to pay for tax and tip and he must rely on strangers for transportation and lodging.
If Stevens is successful he will receive $100,000 at the end of his year. Stevens is about halfway through his journey and has yet to visit Arizona.
Mossler says Stevens’ plan was to venture West when freezing temperatures set in back East.
Keep your fingers crossed that Stevens sticks to his plan and hopefully we’ll see the Groupawn in Phoenix soon. It appears as if it’s getting cold in those northeastern states.