Group Buying
Group buying, through sites such as groupon.com has become an increasingly trendy way to save some money. Recently, many group buying sites have launched in Victoria, BC, and many more are on their way. For example, Ethical Deal ethicaldeal.com is launching in Victoria on February 14, 2011.
What is group buying? Group purchasing is a relatively new concept originated by in 2008, which is founded on the principle that if enough people agree to buy something, they all get a big discount.
In practice, the group buying model is very easy. You log onto the group buying website, look at their daily deal, decide whether to purchase or not, and if you decide to purchase, you receive a coupon for the given item. CNN discusses this in more detail in their article Group buying: A billion-dollar Web trend? from last April (2010)
However, is there a downside to group buying? Is group buying a scam? What are the potential pitfalls of group buying?
According to two recent Globe and Mail articles (Read the Fine Print on Group Buy Coupons and Have We Got a Deal for You and 49 Other People Today Only), although most people are very happy with their group buying experiences, there are a few pitfalls to watch out for.
What to Look Out For When Purchasing a Group Buy Coupon?
- Read the deal carefully. If it is a restaurant coupon, you may only be able to have select items from the menu in some cases.
- Some group buying sites stand behind their products better than others. Groupon.com offers possibly one of the best guarantees.
- Most coupons do not offer change — so if you purchase a $20 coupon for $10 and you only purchase something worth $12, you will only get $12 worth of product, which makes it a lot less of a deal.
- Check the expiration date on the coupon.
- Beware of the temptation to over-spend. Keep in mind your spending limit, what you can afford, and how likely you are to use the coupons within the specified time. The “one-day-only” nature of group coupon purchasing makes it tempting to purchase, but remember to exercise restraint.
If you are aware of these things and are careful, group buying can yield some excellent deals. Here is a list of the group buying sites currently available in Victoria:
- Groupon.com – The one who started the group purchasing craze in 2008.
- Couvon.com – Daily deals just like groupon.com
- Ethical Deal – EthicalDeal.com – Launching in Victoria on February 14, 2011.
- Dine a Deal – Recently launched in Victoria BC, Dine a Deal offers deals on local restaurants.
- Swarm Jam
- Team Buy – Not Yet Launched in Victoria
- Wag Jag – Not Yet Launched in Victoria
Please note – In the interests of full disclosure, I wanted to mention that by clicking on the sites above, you are following my personal affiliate link and if you sign up, I get a credit towards the reward program in question. There is no additional cost to you. This is like a regular sign up.
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