Tuesday, July 2, 2013

Groupon is getting old and big, we're building something young and personal

One of the goals of One Week One Website is to clear off my list of todos. One reason that there is a significant list is I have large goals for each project I work on and it becomes daunting.  My forcing a time limit (i.e. one week) it will help me get feedback and see which ideas are worth improving on. Start my seeds indoors before planting the good ones in the garden. I've had the idea (and partially done code) for a daily deals site. I'll likely start from scratch but getting a bare-bones working site will be the priority in a future week.

Groupon forces companies to off deals at least 50% off then they proceed to take half off the remainder. That means for every dollar of value that massage is worth, the spa is only getting a quarter.  Not to mention a sales army that has to make a new client every day for every market. Groupon also must evaluate whether or not the deal is worth enough that it will help them churn out a profit to investors. We aren't going to do that.

We'll be building a deals platform where, apart from a small processing fee, the merchant keeps revenue from the sale of vouchers.  More similar to traditional advertising, the merchant will pay for the opportunity to  advertise their business but the cost for that will be determined by the merchants based on the supply and demand.  While frontpage slots might cost a lot, we can always add more markets or categories to bring the price down for small businesses.  Conversely, if the market or category has little activity, merchants might be able to advertise for free!

We'll see how my ideas come together over the next few weeks before I get a chance to set this project as the site for a week.  If anyone has any thoughts, I would love to hear them!