Categories: AdvertisingWeb

Not Quite Sold On Local Group Buying Sites

I’ve been an online group buy participant as long as the World Wide Web has been a viable tool of commerce. Heck, I picked up one of the very first DVD players at a steep discount on uBid back in 1998 and did time on Paul Allen’s Mercata before they folded in early 2001. As far as I can tell, solely focused group buying branded sites never really went mainstream. Woot’s probably come closest with a large draw amongst of geeky and their $110 million exit (thank you, Amazon). Mercata once proclaimed “The more people who buy, the lower the price.” And even if most sites featuring that particular hook haven’t found long term success, the trend is in full effect as large retailers such Best Buy and Amazon demonstrate on a fairly regular basis.

As ZNF readers know, local, but still online, group buying has taken off in the last year via Groupon and LivingSocial. Yet, for me, it’s been a mixed bag. Instead of actually buying physical merchandise, these sites essentially sell coupons or vouchers to local businesses. In my experience, most haven’t been conveniently located or particularly compelling. But we’re always on the lookout for a deal, and have purchased three dining-related Groupons in recent months.

First off, the lack of instant gratification has been an issue… because, beyond cyberspace, I’m not the most organized. Specifically, I purchased a $50 food and beverage voucher for $25 (to Vinifera Wine Bar & Bistro) and forgot to put it to use before it expired. The other two Groupons were to Chicken Out, a local chain similar to Boston Market. The first dealio was redeemed with no problem, just beating the expiration date. But the second experience was kinda bizarre. Much like Groupon’s Super Bowl commercials (above).

My wife attempted to redeem her Chicken Out rotisserie chicken Groupon yesterday. But the Reston outpost refused to honor the voucher and claimed it was counterfeit. Weird. And annoying. So of course I tweeted it. Folks, including Groupon, suggested I email in for remedy. Which I did… laying out the account and contact info (my wife’s), along with the unique Groupon voucher code. They promptly replied, apologized, and said they’d refund our purchase. Nice! But a few minutes later, I received a follow-up email refunding the prior Chicken Out Groupon from my account that had already been used. While it’s more favorable to us in terms of dollar amount, both aspects of this experience seems to suggest these guys may be experiencing some growing pains. (Groupon, please feel free to unrefund/refund the proper purchases. We’re not interested in cheating anybody.)

As a home owner once again, we’re also leveraging the web to research and coordinate various projects. And I immediately joined Angie’s List, which has also been something of a mixed bag. As this post is specific to group buys and local discounts, I’ll focus on their Big Deal.

The Big Deal is similar to Groupon in that it offers discounts on local services. But while Groupons are daily, the Big Deal seems a bit more sporadic. In late December, I impulsively purchased an air duct cleaning voucher ($200)… as our home has accumulated about 35 years of dust and debris in the ductwork and this was on my to-do list. Not only would I save a few bucks, I wouldn’t have to bother researching a legit vendor. Unfortunately, I didn’t stop to think that this particular company might not provide service on Saturdays. And, as it turns out, they don’t. So any money I would have saved will be given back through the vacation time I’ll need to take. Like my organizational issue above, this serves as a reminder to do your homework before proceeding. Fortunately, the vendor has outstanding reviews with minimal indications of an up-sell, so I’m hopeful it’ll work out OK whenever I finally manage to schedule them. Assuming I remember.

Lastly, an old grade school buddy has launched CupidRatings. The first cut of the site provides a rather static listing of romantic dining options in South Florida. However, it seems they intend to capitalize on the local online coupon craze by launching “Cupid Deals” at some point. Given the competition and typically limited traffic a burgeoning site generates, they’ve got their work cut out for them as they seek to monetize. But I guess I’m doing my part. :)

Published by
Dave Zatz