Wouldn’t it be great if you can increase your brand awareness, get hundreds of guaranteed customers, and grow your business all at the same time – in one day? If you’ve heard of collective group buying, you might be able to do all of those things in one go.
Collective group buying started in the United States with a service called Groupon. Groupon’s success was then copied by Australian services such as Spreets, Living Social, and Cudo. These services promise you hundreds of customers already willing to take on your offer. More importantly, these sites have also generated excellent results for small businesses.
How the Group Buying concept Works
The concept of group buying is very simple. As a business owner, you just need to come up with a discounted price for your product or service. For example, if you are normally sell a certain gadget for about a hundred dollars, you can provide a seventy percent discount. This will make your product priced at about thirty dollars; but, only if about three hundred people agree to take on your offer. Once the quota of three hundred customers are reached, you already have the deal bagged, and you are guaranteed at least three hundred paying customers.
The loss incurred in discounting your product can be made up by the long-term gain of having an expanded base of customers experience your product first hand.
How do Group Buying Sites Profit?
Group buying sites profit from taking a small percentage from the deal. Depending on the site, these percentages vary and should always be put into consideration when deciding on a certain price for your offer.
How do you benefit from Group Buying Sites?
You can benefit from these sites by volume selling. Furthermore, you can also expect an amount of repeat customers because these buyers have already experienced your product or service first-hand through the group buying deal, and would like to get more of it.
Group buying sites also advertise and market deals to consumers through email and the most popular social networks like Facebook and Twitter. Furthermore, most group buying sites also have their own lists of thousands and thousands of potential clients all looking for a great group deal.
Let’s say the quota of about three hundred buyers, weren’t reached, and apparently no group buying deal materialized. When this happens, at least you are able to get the exposure and the ever-important word-of-mouth marketing from a certain site’s user base.
When it comes to word-of-mouth marketing, almost all of the group deal sites encourage their members to also make the deal known to their friends and family. This, in turn, can further increase your exposure through valuable word-of-mouth.
If you’re looking to test a new product or penetrate a market with a new product in a very short amount of time, you can always consider group buying as one of your options. Group buying can be the most ideal way to get more exposure for your product, get hundreds of customers and grow your business all in one go.