It was huge in Chicago last year, and so, like all good things, Groupon.com eventually made its way to Milwaukee. It made its Milwaukee debut Feb. 22 by offering a 50 percent off deal on pizza, drinks and other goodies at Pizza Shuttle. Nearly 160 Milwaukeeans bought in to reap the benefits.
Here's how it works.
Groupon.com uses collective buying power to score good deals on all kinds of products and services, from restaurants to spas, sporting events and theater. This means that the company earns great discounts by promising businesses a minimum number of customers.
It's really quite simple. After subscribing, you receive daily e-mails detailing the day's offer. If you want to get the deal, you click "buy" before the clock hits midnight (when the deal ends). If the minimum number of people (say, 20) sign up by the end of the day, you'll get a printable gift certificate in your inbox the next morning that you can use whenever you want until it expires. If not enough people join, no one gets the deal an no one is charged.
Founder / CEO Andrew Mason says, "We came up with the patent-pending idea for Groupon as an antidote to a common ailment for us city dwellers: there's so much cool stuff to do, but the choice can be overwhelming. With so many options, sometimes the easiest thing is to go to a familiar restaurant, or just stay at home and watch a movie. As a result, we miss out on trying all the cool things our cities have to offer. By focusing on one good or service each day, Groupon makes it simple."
Since launching in November 2008, the Web site has sold more than two million Groupons (the word combines "group" and coupon") to 2.7 million subscribers in 40 markets. According to Groupon's PR manager Julie Anne Mossler, the company has saved its members $98.5 million. Mason plans to expand to an 80-city roster by the end of 2010, including international expansion to the UK and Canada.
In addition to the savings, Milwaukee representative Zach Boyle says that the promotion of local business is a key factor in Groupon's business model.
"It is an awesome way for people in the city to see what's out there, while saving a lot of money. The opportunities and word of mouth buzz that we create for local businesses is incredible."
Since its Milwaukee launch in February, Groupon has featured local deals on yoga classes and personal fitness at Invivo Wellness, tickets to tour the Pabst Mansion, dinner at Milwaukee Chophouse, movies at the Rosebud Cinema and clothing from Fred Boutique.
To date, the biggest selling Groupon was for the Chicago Auto Show in 2009. The Web site encouraged 14,667 people to buy tickets at $6 apiece. While Milwaukee hasn't yet reached that volume, we have taken to the concept quickly. Each day hundreds of locals buy in to Groupon.com's deal of the day.
OnMilwaukee.com staff writer Julie Lawrence grew up in Wauwatosa and has lived her whole life in the Milwaukee area.
As any “word nerd” can attest, you never know when inspiration will strike, so from a very early age Julie has rarely been seen sans pen and little notebook. At the University of Wisconsin-Milwaukee it seemed only natural that she major in journalism. When OnMilwaukee.com offered her an avenue to combine her writing and the city she knows and loves in late 2004, she knew it was meant to be. Around the office, she answers to a plethora of nicknames, including “Lar,” (short for “Larry,” which is short for “Lawrence”) as well as the mysteriously-sourced “Bill Murray.”
