Much has been made of the power of the internet to “disrupt” business as usual. There are definitely ways to harness technology to save money as you shop online or to earn some extra cash in your spare time. You can also look up discount codes and other ways to save on just about any purchase you care to make, in person or in cyberspace.
Which brings us to Groupon. By now you’ve surely seen these deals floating around your Facebook feed offering deep discounts on nearby goods and services. It looks like it’s too good to be true, but — as with all things — you need to know exactly what you’re getting into for Groupon to work to your advantage.
What Is Groupon, Exactly?
Groupon began in 2008 as a way for local business to work together to increase their marketing power. The idea is that small business could get more attention by joining a website that offered deals on their products and services, and this, in turn, would get people in the door to their business — hopefully leading to loyal repeat customers.
Today Groupon attracts businesses of all sizes to its service by allowing them to set up deals that are advertised of the Groupon website. Groupon specializes in local deals, so you’ll mostly see companies in your zip code when you log on. This helps businesses target their immediate client base and allows you, the customer, to zero in on deals you can actually use.
Once a business signs up with Groupon, they create a special discount for their service; say, 50 percent off of one massage. If you like that, you buy it up front by paying half price for a massage and downloading a gift certificate for that service. Groupon keeps half of the amount you paid, which leaves the local business the other half — and the responsibility to honor their deal when you’re ready to cash in.
This, by the way, means that the local company only ends up with 25 percent of what they would normally charge you for that massage — they’re banking on the fact that you’ll love it so much that you’ll be back for more.
Tips to Make Groupon Work for You
You can get some pretty great deals on Groupon if you want, but there are also some horror stories out there. Here’s how to make sure you’re actually getting a good deal.
Read the Fine Print
As business owners got wise to the fact that they could be taking a significant financial hit on their Groupon deals, they began to protect themselves by placing more restrictions on their offers. If you don’t carefully read the fine print — helpfully labeled “The Fine Print” right under the description of each deal — you could lose out. Common restrictions include the following:
- Time limits on how long you have to redeem your Groupon deal after the date of purchase. Make sure you mark your calendar or set up a reminder in your phone to take advantage of your Groupon, or you could be wasting your money. An expired deal won’t save you any money, and you might end up losing the cash you spent up front on the website.
- Limits on how many offers you can purchase and/or use. Don’t buy more than one if you won’t be able to use it for yourself.
- Limits on how many Groupons you can use in one visit. If you’re planning on taking the whole family out for a fun day, make sure you can use a Groupon deal for everyone on the same visit before you buy more than one.
- Limits that make deals useful for new customers only. Don’t get too excited about a deal for your favorite yoga studio. If you’re already a member or have visited within a certain time frame, you might not be eligible to use the Groupon — and that would be a waste of money.
- Limits on the number of people who can use a Groupon deal. If your deal is for a set of visits or services, check to see if the deal can be shared or if it must be used by the same person. If you plan to get your whole family to the salon, you could be disappointed by these limitations.
Buy Only What You Actually Need
Browsing the Groupon website is a lot like window shopping: You’re bound to see a whole lot of wonderful stuff that you would otherwise never think about buying. This is akin to buying something just because it’s on sale: If it’s not something you really need or want, you’ve just wasted your money. Be sure that you zero in on something you really want as you search for a deal. To do this, use the search bar to type in “cafés” or “manicure” right away so you are focused on relevant results instead of every offer in a 10-mile radius.
Research the Company
Before you commit to buying a deal, head to the company’s own website to get a sense of what they offer as well as their regular rates to make sure you’re actually getting a good discount. Check things like their policies, hours and days of operation, and other relevant details to make sure their services fit into your lifestyle. You should also Google reviews of the company to make sure they have a good reputation in your community. This is the best way to know that you’ll be happy with your purchase.
Once you do your due diligence about a company and are confident that the deal they’re offering is one that works for you, go for it! You can get products and services for half price — or even better. Just remember that you’re investing in the experience up front, so you’ll want to make sure you cash in your purchase ASAP to get your money’s worth.
Got any great ideas or tips about getting great deals at Groupon? Share them in the comments!
