Things I Like - Chicago

Here's an example of a business enterprise where everybody wins – Groupon. This Chicago based marketing company, started in November last year by Andrew Mason, works with local businesses to offer discounts on goods and services to the community. The business model takes advantage of “crowdsourcing” which harnesses the power of the masses on the internet.

Groupon sends out daily e-mails with a deal that offers a product or service at a discounted price. The business relies on the collective purchasing power of a group of interested consumers, hence the name Groupon. Participating merchants pay a commission, making Groupon profitable at a time when so much Internet content lacks an income stream.

For the deal of the day to work, a minimum number of people have to buy it. That crowdsourcing encourages subscribers to tell their friends, family and co-workers. As word spreads, the selected business gains exposure.
~ Chicago Tribune

The ‘daily deal’ on Saturday last week was a $75 Groupon for $35 at one of my favorite restaurants, Crofton on Wells (ie - you purchase a $35 Groupon worth $75 of food and drink). When I first went to the site that morning, 340 Groupons had been purchased. 17 more were bought in the 5 minutes I was looking around. I went back 10 minutes later to check something and the total had gone to 405. Andrew Mason has clearly tapped into something here.

Groupons are offered for sporting and cultural events, activities (Segway tours, sky diving) and area services (teeth whitening, manicures). Recent deals in Chicago included:

• $50 Groupon for $25 at The Grocery Bistro
• $40 for an annual membership at the Art Institute – regularly $110
• $60 for two 1-hour massages at Chiropractical Solutions and Massage ($140 value)

Check it out. Groupon.