Group buying phenomenon offers a great deal for everyone

Whether it's a dinner out, a weekend getaway or a self-pampering spa package, consumers are always looking for a deal.

Group buying sites phenomenon takes online sales and marketing to new heights.

Whether it’s a dinner out, a weekend getaway or a self-pampering spa package, consumers are always looking for a deal.

But the days of scanning flyers and shredding the morning paper are over, thanks to what’s quickly becoming one of the most popular online marketing and advertising campaigns going; it’s called group buying.

In short order, the multi-billion dollar international phenomenon of group buying has taken the online world by storm. Already seeing huge gains, industry leaders like Groupon, LivingSocial and TeamBuy have paved a whole new avenue for online businesses looking to diversify their revenue streams.

The concept is this: build up a large network of subscribers using the ever-popular social networking sites, solicit local businesses for deals and pepper Internet users with the potential bargains they can access if enough people also sign up.

“This is the smartest business model that has hit the marketing arena in decades,” said Errol Clark, creator of Vancouver-based group buying site aggregator DealbyDay.com. “It’s a win, win, win – a win for consumers, a win for the businesses and a win for the group buying company,” he said. “It brings positive cash flow to the companies who advertise this way, while getting the best deal for consumers.”

A typical group buying site works by having subscribers sign up for daily e-mails advertising goods and services at deep discounts – typically half-price, but sometimes as much as 90 per cent off everything from high-end restaurant meals to trendy fitness packages.

However, one of the toughest challenges for the team buying firms is wrangling a large network of subscribers organically, Clark said. “We’re all about growing our list from the ground up.”

It’s important to build a relationship with subscribers and not simply buy an e-mail list like some other aggregators do, he said.

Only weeks old, DealbyDay.com has quickly grown its subscriber base by aggregating over 14 group-buying sites such as Groupon, LivingSocial, TeamBuy and BCDailyDeals, creating a one-stop-shop for consumers to find the best daily deals going.

DealbyDay.com eliminates some of the e-mail clutter for online shoppers by aggregating all of the deals into one e-mail, Clark said.

Despite creating a consumer-friendly environment, the deal aggregator also gives considerable exposure to the group buying companies themselves, Clark added.

“Competition is a good thing. We’re promoting better deals, and getting the sites exposed to a larger subscriber base.”

It’s not only the big guns like Groupon, credited with starting the craze in 2008, flooding the market, many news media and other online publication companies are jumping into the ring as well.

Black Press, owner of over 70 community newspapers and websites throughout British Columbia, recently launched BCDailyDeals, a group buying site promoting deals for businesses around the Lower Mainland.

Since its conception in mid-October, BCDailyDeals has quickly taken its stake in the group-buying frenzy.

Jason Naidu, BCDailyDeals project manager, said Black Press is in a good spot to compete in this market by leveraging its already-existing advertising client base.

Black Press has a sales team dedicated to reaching out to existing advertising clients, getting them involved in a new, fresh advertising opportunity, Naidu said.

“We feel our existing multi-media power gives our product a chance at longevity.”

BCDailyDeals differs from some of the other group buying sites by focusing on bringing deals to consumers and businesses outside of the city centre, Naidu added.

Some of BCDailyDeals’ most successful deals include: $10 fr $20 worth of Montreal smoked meat and deli fare at Estrella’s Deli in Langley; $11 for $22 worth of food and beverage at SandPiper Pub in White Rock and $39 for an organic paprika facial at Trinity Spa & Salon in Burnaby.

Surrey North Delta Leader

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Surrey bus driver tests positive for COVID-19

Routes he drove have not been disclosed

Surrey mayor denies property tax deferral motion

Councillor’s notice of motion for Surrey property taxes to be deferred until Dec. 2 out of order

Team refunds OK’d for cancelled Surrey Mayor’s Cup soccer tournament

The decision follows the amalgamation of the Central City Breakers club with Surrey Football Club

COVID-19: 4 new deaths, 25 new cases but only in Vancouver Coastal, Fraser Health

A total of 1,291 people have tested positive for the novel coronavirus

COVID-19: Don’t get away for Easter weekend, Dr. Bonnie Henry warns

John Horgan, Adrian Dix call 130 faith leaders as holidays approach

COVID-19: Trudeau says 30K ventilators on the way; 3.6M Canadians claim benefits

Canada has seen more than 17,000 cases and at least 345 deaths due to COVID-19

RCMP call on kids to name latest foal recruits

The baby horses names are to start with the letter ‘S’

As Canadians return home amid pandemic, border crossings dip to just 5% of usual traffic

Non-commercial land crossing dipped by 95%, air travel dropped by 96 per cent, according to the CBSA

Logan Boulet Effect: Green Shirt Day calls on Canadians to become organ donors

While social distancing, the day also honours the 16 lives lost in the 2018 Humboldt Broncos Crash

COMMENTARY: Knowing where COVID-19 cases are does not protect you

Dr. Bonnie Henry explains why B.C. withholds community names

B.C. wide burning restrictions come into effect April 16

‘Larger open burns pose an unnecessary risk and could detract from wildfire detection’

B.C. secures motel, hotel rooms for COVID-19 shelter space

Community centres, rooms reserved for pandemic self-isolation

Most Read