Food, Home and Style

Recession Obsession: Groupon

In a downturn, a little deal won’t do ya.

To get my attention, it has to be a steal. And a low price alone won’t convince me to pry open my wallet; the discount has to be on something really good. Like, say, two one-hour massages for $75—which is what I paid last week through Groupon. (Full disclosure: Sign up through this link and we get a few bucks.)

My new favorite bargain source, Groupon is sort of what is sounds like. Each day, subscribers get an email about a major discount on a local product or service. (Yesterday, San Franciscans could get a $90 hypnosis session for $40; in D.C., the offer was a $35 restaurant gift certificate for $15.) If a certain number of people commit to buying, everyone gets the deal and their credit cards get charged. If not, they pay nothing.

“It’s free advertising for the vendor,” Maureen Erickson, vice president of sales in the greater Chicago area for BriteSmile, recently told Reuters. “Even if (customers) don’t purchase, it introduces a new service or vendor they didn’t know was there.”

Groupon, which only launched in November, already boasts more than 200,000 subscribers.

Pros:

• One deal a day, so it’s not overwhelming.
• Discounts on things I (and maybe you) actually want, like massages or food.
• Substantial price cuts—often 50 percent or more.
• No catch yet!

Cons:

• Wait too long and the deal may be sold out.
• Right now Groupon is only in Boston, Chicago, New York City, San Francisco, and D.C. Atlanta, Los Angeles and other cities are coming soon.
• If you have a hard time resisting bargains, you may buy stuff you don’t need. (Unlike my massages, which are totally necessary.)

There are some frugal habits I’ll be ditching when the economy picks up—think lentils—but I don’t think Groupon is one of them. Unless, that is, they can’t offer such great deals once businesses aren’t desperate for customers.

Tags: bargain, coupons, discount, fitness, groupon, massages, restaurants, salons, shopping