Rachel McMaster usually pays $75 for wine, she but using a trendy new coupon service was able to save $60.
“What college kid doesn’t want to pay half price for stuff?” the sports administration senior said.
The fastest growing Web company in history is not Google or Facebook, but the deal-of-the-day website Groupon, a blend of the words “group” and “coupon.”
Kassidy Herring, biology freshman, said she used Groupon to find discounts on makeup, restaurants, tours and a trip to a nail salon in New Orleans.
Groupon partners with local businesses seeking exposure and new customers to sell discounted gift certificates to savvy young urbanites. Site members anxiously await emails describing local daily deals.
The company uses collective buying to ensure success to local businesses. For each Groupon, a certain number of members have to purchase the certificate for other members to receive their Groupon. Once a Groupon is purchased, it can be redeemed at the business.
Over the last year the company’s membership has skyrocketed. In the first quarter alone Groupon’s membership grew from 3.4 million to 83.1 million.
The Chicago-based company now has a presence in 88 U.S. cities and 22 countries.
Baton Rouge businesses have recently been chomping at the bit to join the phenomenon.
Local members have seen discounted prices up to 67 percent in recent weeks on products and services ranging from a month of exercise classes to Britney Spears concert tickets.
Revenue gained from Groupon users is discounted and shared, 50/50 in most cases, between Groupon and the local business. Vendors rarely break even on the deal, but businesses that have worked with the company praise Groupon for promoting their products.
Express Oil Change & Service Center on Perkins Road offered 66 percent off for oil change and tire rotation June 1. The service shop sold 505 deals over two days.
“We are a fairly new store and were using [Groupon] as a way to meet new customers. … We saw 100 new customers in a week. It was super successful,” said Don Fillingame, managing partner.
Chemical engineering sophomore Kyra Jones purchased Express Oil’s Groupon but hasn’t redeemed it yet.
She said Groupon is useful for students on a budget.
“It makes things that college kids want to do but can’t afford easier, and it opens you up to new experiences. It has practical things too,” Jones said.
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Contact Laura Furr at [email protected]