Definitions

It is sometimes difficult to understand what is meant by certain words when discussing a Group Buying Site (GBS).  This is what we mean as the Proprietors of the site:
   1) Group Buying Site – a website which allows Subscribers to group together in
       order to obtain great discounts on products and services offered by Sellers.
   2) Seller – the merchant or company that sells on the GBS.
   3) Buyer – the consumer or subscriber who registers to purchase the Deal.
   4) Deal – the discounted offering.
   5) Presentation – information or campaign shown to the buying public.
   6) Coupon - a “Voucher” entitling the holder to the discount.  The Voucher is printed by the Buyer and presented to the Seller to claim their Deal.
   7) Group Buying Service Network – a group of websites working together to provide Group Buying Sites around the country.  

Merchants: Nearly FREE advertising.  No up front costs!  You don’t pay unless a Deal is sold.

Group Buying Sites are sweeping the nation to help local businesses offer customers killer daily deals and big savings coupons for products and services.  Also known as collective buying sites, group purchasing websites are fairly new and many consumers and businesses aren’t aware of how group buying works,  We’ll discuss details like how to use group buying to harness collective buying power, deal tips for local businesses and online sites and frequently asked questions.

 The merchant agrees to offer customers a specific product or service at a greatly discounted rate (usually 50% off or more) .  Eligible customers’ credit cards are charged for the purchase and they can print a voucher that is used to redeem the deal with the merchant. For example, a typical deal may include $100 worth of services from a merchant for only $50. 

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Focused and Local
In marketing, if you can’t be first in the industry, then create a market or niche and be number one there instead. We think you’ll see group buying sites starting to focus in on particular niches. For instance, group buying for the outdoor enthusiast or for food services. We think you’ll also start seeing a lot of segmentation to the market. In addition to focusing on particular niche industries, we think you’ll start finding sites that are local as well. For example, Groupon has an Atlanta offer site, but they don’t have a Dawsonville offer site. Group buying sites should be focusing on local markets like Dawsonville and surrounds.

Location-based
It seems that group buying sites could benefit from location-based services more than they already do. Imagine checking in at a downtown store and finding out that either that store or one close to it is offering a group buying deal. Or, if you are traveling, and you check the internet to help you find a good restaurant, it would be very exciting to find out that there is 50% off at an Italian restaurant right down the road. We think location-based group selling will be a big part of the future success of the industry.

How Group Buying Can Help the Seller

Group buying is fast gaining popularity among business owners.  For those business owners who are still trying to grasp the concept of this phenomenon, let me break it down for you.

Lets say you are a subscriber to a discount website or a deals site as it is more popularly known nowadays. You would see various offers on product discounts on the site and if you are interested, you would just need to enter your payment details and purchase the product or service. Once the deal is confirmed, you will receive a payment confirmation on your email and print your voucher. It is simply a shopping strategy in which you get to pay less while the business gets to sell more.

However, its not just about the savings that we are after. One might think that group buying is well and good for buying products you need to run your business, but it is much more than that. Today, most group buying sites are largely focusing on local businesses and for consumers who are a bit conservative on their spending habits, this trend is just the answer to their prayers.

So how can a small business owner reap the benefits of this phenomenon? The answer is fairly simple. Register to one of the growing number of group buying sites so you could offer discounts and start riding the group buying wave.

You might think that this is counter-productive for your fledgling business. After all, your business should be generating more income and with the current state of the economy, offering discounts is the least of your priorities. But you need to look at the bigger picture. More consumers are looking to find great deals because of the weak economy.

Your business, no matter how lucrative it may seem, is just starting out and you need to have an edge against your competitors. In effect, you should start thinking the way your customers think:  What could you possibly offer that your competitors couldnt?

The temptation of a great discount is too much to resist which is why group buying is becoming vastly popular worldwide. For startup businesses or even if you are in business longer than you could remember, attracting more customers is a challenge. Offering your products on discounted rates may not make you the millionaire you envisioned yourself to be but it definitely would pave the way.

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