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Online bargain hunters find strength in numbers

Individuals join forces with friends, neighbors to score deals of day at online coupon sites

NEWS CONSUMER REPORTER

Published:August 23, 2010, 12:00 AM

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Updated: August 30, 2010, 10:58 AM

Money-smart Western New Yorkers have long engaged in group buying— pooling resources to buy larger quantities for better prices. But until recently, they’ve had to do it all on their own.

Thanks to a booming trend in eCommerce sites, some of which just recently set up virtual shop in Buffalo, people here can now take advantage of large group discounts without having to do the dirty work of rounding up their friends and collecting money.

Here’s how it works: Sites such as Groupon.com (the biggest) and LivingSocial.com build a community of consumers looking for discounts on things such as dinners, spa services and entertainment tickets. Then, dangling that big crowd of potential buyers before local merchants, they promise to deliver customers in exchange for deeply discounted merchandise and services.

Even better for both retailers and customers, many sites recruit users to spread the word about deals among friends by giving consumers a kickback when friends make purchases. It makes sense, since the whole premise rides on gathering enough people to secure large quantity buys. Local merchants get exposure to new customers while shoppers get discounts of 50 to 90 percent and the possibility of further rewards. In theory, everybody wins.

But there is one caveat for bargain hunters: The deals can be habit-forming. In fact, most sites have a little clock counting down the hours and minutes left until a deal expires. This plays on the “perceived scarcity” method of spurring sales, and can pressure a person into acting on a purchase they otherwise wouldn’t.

Anyone who is easily tempted to buy things they don’t need may be better off skipping these sites. Out of sight, out of mind, after all. But for consumers with the willpower to take advantage of only the deals they can afford and will use, have at it!

Groupon.com

Groupon is the Web site that started it all. Each day, it features a different deal at a Western New York business at a steeply discounted price.

Recent deals have included tickets for a two-hour narrated boat ride tour on Buffalo Harbor Cruises ($7 apiece, regularly $15),a one-hour massage from Quinn Caya on Elmwood Avenue ($30, normally $65) and a golf package at Frog Hair Grille &Golf that included two hours of golf, two entrees, two drinks and an appetizer ($45, regularly $126!).

People who sign up for the site (which is free) will receive an e-mail each day outlining that day’s deal. The screen will show the discounted price of the deal, its regular full value price, the percent discount being offered and the savings that represents. Users who want the deal click on the big, green “Buy” button.

Generally, subscribers are limited to purchasing one deal for themselves, plus three additional ones as gifts. They can’t use the coupon until the next day, because the deal is only good if a predetermined number of people buy it. If fewer than the quota sign up, the deal is canceled and there is no charge.

As the day goes on, the screen will show how many Groupon coupons have been sold, and will let would-be buyers know if the quota has been met—meaning they can rest assured they will get their Groupon. Those who buy before the quota has been met will get a notification e-mail with a link to print the Groupon coupon after enough people buy in. The link will also appear under the “My Stuff” tab when on the Web site.

The offer to buy expires each day at midnight, but the coupons do not. Expiration dates vary.

Groupon also rewards members for bringing friends into the group. Members get a unique referral link that they can send to friends via e-mail, Twitter and Facebook. If the friends use the link to sign up within 72 hours, the member gets $10 in Groupon bucks once the friends make their first Groupon purchase.

Since Groupon is active in about 140 markets, chances are you can share with even faraway friends. Members can also book coupons in anticipation of travel and vacation.

LivingSocial.com

LivingSocial is the second most popular group-buying site after Groupon, and works much the same. Members sign up, they get a daily e-mail featuring that weekday’s local deal, and if they like it, they buy it. The next day, they will receive another e-mail with the link to their coupon or voucher.

Recent deals on this site have included five yoga classes at Shakti Yoga on Grant Street ($35, regularly $75), two-hour sailing lessons for two at Seven Seas Sailing School on Fuhrmann Boulevard ($100, regularly $200), and half-priced food and ice cream at Mississippi Mudd’s and Old Man River in Tonawanda (a $12 value for $6).

Its big advantage over Groupon is that there is no minimum quota of buyers before the deal becomes valid. If you buy it, it’s yours. You just can’t use it until the next day.

As far as rewards go, members who partake of one deal, share the news with their friends and have three of them sign up, too, get their deal free.

Offers are one-day-only deals, expiring at midnight. LivingSocial is available in 52 cities.

ideeli.com

This ideeli.com site works a little differently, offering luxury brand beauty, fashion and home items for sale. But instead of offering just one item, it offers a selection of items from several retailers.

Recent deals included groupings from Tommy Hilfiger (fuchsia flip-flops for $25, regularly $39; red stitched nylon purses for $34, regularly $88), DaLish Cosmetics (coral lip balm/cheek blush for $7, regularly $11.95; grapefruit body lotion for $9, regularly $19.95) and an assortment of Teaposy tea pots and gift sets (Socrates tea pot, $50, regularly $104.99). Furla handbags, recently featured in Oprah Winfrey’sOmagazine, offered a choice of CarmenLhandbags in three different colors for $199 (regularly $475).

Signing up is free, but the site offers an upgrade to “first-row membership” for $83.88 per year. Firstrow members can shop the site’s sales one hour earlier than second-row members (some quantities are limited), and have access to special members-only sales.

Unlike Groupon and LivingSocial, which focus on activity-based deals at local businesses, shopping sites such as ideeli can feel a little bit like paging through a sale catalog at an online retailer. While half-priced theater tickets or a$30 dinner discount on one of the other sites is a clear-cut deal, fashion prices fluctuate often, making some deals feel like less than a steal.

Still, members get a$25 credit when any friends they invite to join make their first online purchase.

Gilt.com

Inspired by the idea of taking designer sample sales to the Internet, Gilt Groupe offers high-fashion items from luxury brand designers for up to 70 percent off their retail prices. Sales expire after a 36-hour run, but the items could easily run out before then. Members get $25 for every referred friend’s purchase.

The site tries to create an air of exclusivity, which can get annoying. For example, when you sign up, instead of a button saying “Join” it says, “Request Membership.” Once you submit an e-mail address, it says you’ve been added to its “waiting list,” then goes on to say that membership is by invitation only, and that there are just a few openings for new members each day.

Woot.com

Woot.com mainly sells discounted electronics. It features one item per day, which is available either until it sells out or until 11:59 p. m., whichever comes first.

Woot boasts a knowledgeable community of online followers. Click on the discussions about each product to get near-expert opinions on the quality and merits of the items being offered.

The site has recently branched off into a few other subcategories. There is now Kids. Woot.com (just what it says, products for babies and children), Shirt. Woot (for T-shirts) and Wine. Woot (for wine).

Shipping costs vary.

8coupons.com

The 8coupons.com site is practically made for bargain loving Western New Yorkers. It’s a clearinghouse for daily deals pulled from dozens of other group-buying sites, including some of the ones already mentioned.

Just put in your ZIP code and the site will generate a list of deals available in your area, including things such as coupon codes. Some deals here don’t expire for a month or two at a time, while others are for one day only.

Recent offers included a printable $25 gift certificate for the Wine Thief Bar&Bistro on Elmwood Avenue for just $15 (from Restaurant.com), a Mediterranean dinner for two at Sonoma Grille in Snyder (via Living- Social) and a free appetizer from Outback Steakhouse (upon signing up for its rewards program).

As with many aggregator sites, false and expired deals slip through the cracks. But while 8coupons is not as reliable as sites such as Groupon and LivingSocial, there are still deals to be found.

Each day, the site pulls together the top eight deals offered and e-mails them to members. Members can also have some deals texted to their mobile phones instead of printing them.

schristmann@buffnews.comnull

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