Daily deals have become big business in recent years, with companies including Groupon, Voucher Cloud, Living Social and countless others offering attractive discounts on appealing retail, dining and luxury lifestyle products and experiences. Adam Goldberg, formerly of Google and Oracle, has one criticism of this business model: by providing the incentive of a discount, daily deal apps encourage consumers to spend money on things which they don’t need and would never have considered had they not been confronted with such brazen marketing.
Goldberg’s startup, OffersBy.Me, has found a way to align the daily deal model with the more practical requirements of everyday life, by allowing users to search for products and services which are already on their To Do lists. Goldberg explains on the OffersBy.Me website: “In many ways, a daily deal is really a shot in the dark. Whoever is offering the deal has no idea who you are, what you want, or what your budget is. Offers from OffersBy.Me are much more intelligent, in that we let you tell us all of those things, and then find offers from local businesses that match your criteria. That way, we don’t waste your time with deals that are irrelevant to you.”
Such a refined search technique prevents the user from becoming overwhelmed with offers, many of which are entirely useless to that particular individual, and it is this streamlined structure which Goldberg hopes will lead to OffersBy.Me having a higher redemption rate than Groupon. A time and location sensitive deal app would certainly be well received by consumers; just think about the time and money you could save on Christmas shopping. Goldberg is confident that the targeted methodology of OffersBy.Me will also prevent luxury brands from becoming degraded, as high value offers will appear only when sought out, and will not be visible to shoppers who are only after “bargain basement” deals.
In addition to providing customers with what they genuinely need, Goldberg is keen to be fair to retailers. Groupon is understandably popular among consumers, but the companies providing the actual offers themselves get a pretty raw deal; Groupon takes 50% from all revenue as payment, very often forcing businesses to compromise on their profit margins as a result. OffersBy.Me aims to be equally friendly to businesses and the end user, eschewing Groupon’s “one size fits all” approach – OffersBy.Me is free to use and takes just 10% of an offer’s value, and only when that offer is redeemed.
OffersBy.Me gives retailers valuable analytics insight, enabling them to tweak and enhance their offers based on which deals have gained the most traction. Businesses also have full control of the timing and location of their offers – ideal for companies with multiple stores who are hoping to sell excess stock or incentivise local customers during slow spells.
However, this new deal-based start-up isn’t quite ready to take over the world just yet. OffersBy.Me’s range is currently limited to Columbus, Ohio – but Goldberg is optimistic and anticipates imminent, substantial growth once word begins to spread of a business-friendly alternative to industry leaders like Groupon.