Take Advantage of Collective Buying

Take Advantage of Collective Buying

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Each day, Groupon features an unbeatable deal on the best stuff to do, see, eat, and buy in your city. By promising businesses a minimum number of customers, it gets discounts that customers won’t find anywhere else. Businesses benefit by selling vast numbers of that particular product or service in 24 hours. Founded in 2007, Groupon has 50 million registered subscribers in 40 countries. Local group buying site Twangoo was recently acquired by Groupon, so it’s now in SA too.

In South Africa, Groupon deals are available to subscribers in Durban, Johannesburg, Soweto and

Cape Town.

Go to www.MyCityDeal.co.za to sign up.

Groupon for Incentives

Stretch Your Incentives Budget

You can buy Groupon deals as a gift for someone else. This means you can offer members of your staff or sales team great incentives at excellent savings, getting far more from your incentives budget than ever before. You can save between 50% and 90% on an incentives gift, and your staff will feel appreciated — it’s a win-win situation.

Groupon for Business

A one-day feature on Groupon can bring your business thousands of new customers.

Making That Call

Want to get your business featured on Groupon so you can enjoy the benefits? To get started, simply contact Groupon.

Creating the Copy

Groupon takes care of the write-up for your product or service to ensure that every Groupon offer is engaging, entertaining and non-intrusive.

Sending the Pitch

On the day your deal is featured, an email will be sent out to Groupon’s installed customer base in your city, pitching the offer. These are people who have signed up with Groupon and who eagerly await each day’s new deal. But it doesn’t stop there. The beauty of Groupon is that if someone likes your deal, they share it with friends so the word spreads even further.

Return on Investment

The platform was designed as an alternative to traditional advertising. Most marketing (print ads, radio spots and TV commercials) requires upfront payment, while Groupon does not. It keeps a cut of the revenue from each voucher sold and sends you the rest, so you pay only for the customers you actually get. But, and this is a big but, Groupon takes a cut of up to 50% on each voucher for an item that has already been discounted by 50%, which means the cost of sales can be overwhelming. It’s something to bear in mind if you’re thinking about using a group buying site like Groupon.

The added revenue comes at a cost, but if you’re looking to get feet through the door of your restaurant, spa or yoga studio, it can be a worthwhile promotion because it attracts many first-time customers. Just be sure that your business can handle the influx. It’s likely that you’ll end up breaking even, so it’s wise to view the exercise as an investment in future growth.

Monique Verduyn
Monique Verduyn is a freelance writer. She has more than 12 years’ experience in writing for the corporate, SME, IT and entertainment sectors, and has interviewed many of South Africa’s most prominent business leaders and thinkers. Find her on Google+.