Groupon – Bright, shiny objects!

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Google Executive Chairman Eric Schmidt has announced that the search giant will launch its Groupon competitor on Wednesday, starting with Portland.

The news that Google is getting into the daily deals space is not a surprise. Google attempted and failed to acquire Groupon for $6 billion last year. A few months later, Mashable exclusively learned that Google was developing a Groupon competitor called Google Offers.

At the D9 Conference in Palos Verdes, California, Schmidt and Stephanie Tilenius, Google’s VP of commerce, demonstrated the company’s new product. It’s just like Groupon in that it provides users a daily deal from “thousands of merchant partners.” Google showed off a deal for $10 worth of Floyd’s coffee for $3 on stage.

The big selling point for Google Offers is that it will integrate seamlessly with Google Wallet, the company’s NFC-based payment system launching this summer. Instead of printing out a coupon or barcode, completed offers are put into a user’s Google Wallet, where they are automatically saved and redeemable. Eventually they will be utilized automatically through NFC.

Google Offers will be available Wednesday in Portland and eventually will roll out to New York, San Francisco and other cities during the summer.

via mashable.com

Bye, bye Groupon…

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In order to stimulate interest, businesses are told they have to discount goods and services by at least 50 percent. Even deeper discounts of up to 80 percent are encouraged. On top of that, the group buying site keeps as much as 50 percent (more perhaps?) of the amount the merchant brings in.

You do the math. If you offer a deal of $20 for $40 worth of goods or services, then the group site keeps as much as 50 percent of the amount sold, does that make sense?

Oh, but it’s advertising. Right, I get that. And if you’re advertising budget is big enough, or the margins on your products are high enough, it makes sense. You don’t lose your shirt with every sale. But, not every small business is the Gap. Quite to the contrary, most of us work on minimal ad budgets and thin margins.

One small business, Poises Cafe, lost so much money the owners had to dip into their personal savings to cover what they claim was an $8,000 loss! The owner called it a “terrible decision,” one that was made at the objection of her husband. Consider not only the strain this placed on their business, but their personal lives as well.

via thesocialmediahandyman.com

Paul Chaney has done a good job addressing the Groupon dilemma here. Personally, as a consumer I love Groupon, but as a small business owner I have a lot of other options that are free or much cheaper. You can follow the ‘via’ link above to read the rest of Paul’s article — comment below or ‘connect’ above to discuss how this applies to you and your organization…

: Image via CrunchBase

Buy local? It’s more than just a tagline but if you want more than your fair share of drive by business, you have to consider what these tools can do for you…

“There’s been much hype, crazy valuations, and overall market excitement about businesses that promise to unleash the power of the social graph, location, recommendations and group buying. Facebook’s latest valuation according to SecondMarket is now about $30 billion, Foursquare raised $20 million at a post-money valuation of $115 million while still at a pre-revenue stage, Yelp, short of selling for $550 million to Google, raised over $25 million at an undisclosed but very high valuation, and finally Groupon raised $135 million at a whopping $1.35 billion valuation. So besides their huge success with the investment community, and their users, what do these companies have in common, and what does all this have to do with disrupting Local Commerce?” Source: The Future of Local Commerce = Facebook + Foursquare + Yelp + Groupon

imho, you if you want maximum impact, you also have to consider what these tools will do for you when combined with old media like outdoor advertising as well, but not everyone has the ability to help you integrate outdoor like e1evation does…

What do each of these tools do? Here’s your primer and why you should care…

“Let’s focus on the main function each of these different startups provide to understand how bringing them together will ultimately disrupt multiple trillion dollar industries:

Facebook: provides the Social Graph, which is fast becoming a utility. Through its open platform, and APIs, we share more about our lives and our interactions online and on mobile every day.

Foursquare and Gowalla: provide location services and check-ins, along with game mechanics that motivate users to unlock badges, earn mayorships, and get discounts at local stores in the process.

Yelp: provides crowdsourced reviews of local businesses. Now also provides check-ins, and offers.

Groupon: provides discounted offers against a promise to increase sales and bring in brand new customers to local businesses.

The interesting thing here is that there’s a lot of overlap between the features offered by these companies. Recently, Facebook launched Places, a mobile geo-location service that mimics Foursquare local check-ins. Yelp also added check-ins, and recently rolled out Yelp Deals, a Groupon clone.” Source: The Future of Local Commerce = Facebook + Foursquare + Yelp + Groupon

My advice? Find someone who can help you get launched and get moving, but I’m in that business so what would you expect me to say? Really! Comment, call or use the contact form to connect so we can talk about how this applies to your business…

via ScribeFire

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