How many Deal Sites can there be? The obvious leaders of the game are Groupon and BuyWithMe, but there are SO many other niche groups that offer deals too.
Some of the smaller players with potential are:
- SCVNGR’s Level Up
With Level Up, customers are able to increase their discount the more times they go to a place and check in. So you may start with 10% off at a local bakery, then the next time 20% and the time after that 30%. Unlike Groupon & BuyWithMe, Level Up rewards repeat visitors, which is ideal for small businesses.
- RueLaLa & other Fashion Sites
The fashion sites bring you a lot of the most fashionable items at a really steep discount. Not quite stepping down to be a Maxxinista (although I’m certainly not one to tell you that’s a bad thing) these fashion sites bring new items and highly sought after brands for reasonable prices. These appeal to niche markets of fashionable people who still really like a deal.
How can deal sites differentiate in an over-saturated market?
First, I think it’s important to be as localized as possible. To have deals in your neighborhood, or a 2 mile radius of where you currently are is ideal. If you’re looking for a deal on your phone for a restaurant it’s because you’re hungry. Right now. You want good food, for cheap, right now. So you probably don’t want to hop on the T for 40 minutes to Washington Square to get dinner.
Another way these systems can differentiate themselves is by creating better partnerships with vendors. Because many deal sites have had bad press over how much these big price cuts don’t help small businesses, soon the deal sites will have fewer and fewer vendors to choose from. To make their company stand out among the rest, the deal site should work more heavily with the vendors and treat them fairly so that they only use their site to distribute deals. Eventually, consumers would figure out that one deal site had the best places to choose from and flock to that ONE over all the rest.
Will the business system last?
Yes.
People love deals. I love deals. My sister and I are now known in the family as the frugal sisters. We shop around for price cuts on just about everything. I have a habit of reusing sandwich bags, living with plastic furniture, and not taking cabs.
I use Deal sites for every time I try a new restaurant or get a hair cut.
Most people, including myself, just don’t care where we go for some of these things. For us to become repeat customers, the vendor has to build the ultimate service experience (not just the average customer experience) for us to feel compelled to come back. Generally, those that go on Deal Sites aren’t showing that kind of service, and that’s why they aren’t getting the return.
Do you think Deal Sites will Last?