Groupon, LivingSocial and More Online Coupons: 7 Tips to Save Money
By Farnoosh Torabi | Jul 15, 2010 | 2 Comments
More and more, getting the best deal in town is thanks to the power of community. With the lightning-speed growth of social buying Web sites like Groupon, LivingSocial, SocialBuy and BuyWithMe, shoppers across the country are using online coupons to nab steep discounts of 50 to 90% on dining, hotel rooms, spa treatments and recreation. The social aspect: Each of these deals is good only if “enough” people join in on the offer before it expires.
'Daily deals' sites turn discounts into a social media phenomenon
A new breed of coupons offers eye-popping savings at local stores and activities, but the chance to buy each one usually lasts 24 hours or less.
October 26, 2010|By Andrea Chang, Los Angeles Times
As shoppers get ready for another tough holiday season, more will be using coupons — but not your mother's old-school, cut-on-the-dotted-line version.
A new breed of coupons — zapped daily to consumers' e-mail accounts and offering local deals for spa treatments, restaurants, yoga classes, hot-air balloon rides, stores and even Botox — has transformed the dowdy discounts into a social media phenomenon that's attracting a new generation of fans.
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The savings are eye-popping: 50% to 90% off is typical. But there's a catch. If you want that $40 mani-pedi for 15 bucks, you'll have to pay upfront with a credit card and you'll have to move fast. The chance to snag one of these vouchers usually lasts no more than 24 hours (though merchants will honor them for weeks or months).
Bargain-hungry shoppers are hooked. "Daily deals" websites including Groupon, LivingSocial and Screamin Daily Deals have attracted millions of users, a lot of them young, urban and tech-savvy. Many say they love the excitement of waking up in the morning, checking the latest deal online and deliberating with friends on Facebook or Twitter about whether to buy — all while the clock ticks down.
"It's totally addictive," said Yi Zhang, a 24-year-old from West Los Angeles who has spent more than $1,000 on dozens of daily deals in the last year. "Sometimes I press refresh at midnight if I'm awake."
Retail watchers say the websites have given the retail industry a much-needed lift. Local merchants get an immediate injection of cash, and pure profit if customers pay for the coupons but never use them. More important is exposure: Groupon, for instance, has more than half a million subscribers in the L.A. market alone.
There are risks. Some business owners have lost money on the promotions or have been unable to convert deal seekers into permanent customers. Others have capped the number of vouchers they'll honor on a given day, angering buyers.
