Last year, a large amount of buzz surrounded Google's attempt to purchase the leading group buying website Groupon, which currently has over 60 million subscribers. Although the deal did not go through, Google's interest in the site signified that there is a future to the growing business trend of group buying. Group buying is a new way to provide special deals to your patrons but how does it work and what benefits does it provide?
Websites like Groupon, LivingSocial and Tippr are group buying sites that give consumers the opportunity to get better discounts on products and services by working together. Deals become active once enough people buy into the product or service. For example, Groupon offered 50% off admission to ice skate at Chelsea Piers in New York, but the deal only went into effect once 200 people bought in.
Group buying puts a new spin on the classic coupon, reaching a group of tech savvy consumers who are excited to take part in deals daily.