The rise and rise and rise of group buying sites in Australia smells very much like a bubble to this Taskmaster, but I have to say that the group buying model does appeal for a start-up looking to get off the ground.
If you are the right type of company, with the right type of product, putting an offer on a group buying site could be the way to boost your customer database very, very quickly.
Get daily business news.
The latest stories, funding information, and expert advice. Free to sign up.
And the proliferation of group buying sites makes it even more attractive, as SMEs can effectively shop around for the best terms.
For example, if you want to cap your offer to a certain number of customers, you should be able to find a site that will do that.
If you want to haggle on the size of the cut the group buying site (it can be anywhere from 50% to 10%) then there are plenty of rivals to play off against each other.
There are a few words of warning though. Firstly, be aware what it will mean for your business if thousands of customers hit at once. Will you be able to cope? How long will it take to redeem all of those vouchers? How will this affect your ability to service those customers who pay up in full?
And perhaps most importantly, will your pricing be affected forever?
It’s not for everyone, but group buying might now be worth looking at.
Get it done – today!