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.

Just Posted

Update: Search called off for missing person in Jones Lake Area

Hope Search and Rescue crews re-started search at 6 a.m. this morning

Habitat for Humanity says it owes no money to former CEO

Upper Fraser Valley branch responds to wrongful dismissal lawsuit

UPDATED: Police call off search for body under Agassiz Rosedale Bridge

Swimmers reported discovering body two days ago

Garbage truck and van collide on 6 Ave.

No serious injuries in mid-day collision

A man around town: Trevor McDonald

If it’s musical or entertaining and in Chilliwack, Trevor McDonald’s probably had a hand in it

Here’s what you need to know about Day 2 at the BC Games

From equestrian to volleyball to swimming, all 18 events in full swing here in the Cowichan Valley

B.C. mining company, involved in 2014 spill, ordered to pay lost wages

Mount Polley Mining Company must pay wages to 26 employees who were laid off without proper notice

Two significant wildfires burning in southeastern B.C.

More than 20 fires were burning in the Southeast Fire Centre as of Saturday afternoon

Volunteers provide the glue that keeps BC Games moving

The 2018 Cowichan Summer Games had more than 2,300 volunteers on hand across Vancouver Island

No Name brand chicken nuggets recalled due to possible salmonella

Canadian Food Inspection Agency says multiple illnesses reported in B.C., Alberta and Ontario

Lodeiro scores twice to help Sounders beat Whitecaps 2-0

Seattle’s Nicolas Lodeiro opened the scoring in the fifth minute when he converted a penalty kick

Fraser Surrey Docks mechanic dies on the job

‘This is a very sad day - a worker went to his job this morning and didn’t go home’

VIDEO: Critter Care opens its doors

Thousands attend open house at Lower Mainland wildlife rehabilitation centre

Race walker breaks 18-year-old BC Games record

Zone 6 athlete Olivia Lundman crossed finish line with ease, to loud cheers in Cowichan

Most Read