UPDATED: WBIR covered local use of FlutterToday and Groupon and included my thoughts.  Video is below the jump.

Buying in bulk for cost savings isn’t exactly the cutting edge on getting a great deal, Sam’s Club members have done it for decades. But what about leveraging technology to create a group of customers for bulk savings?  That’s new and the two national powerhouse sales sites, Groupon and Living Social have set their sights on Knoxville.

Beating them to the punch, multiple hometown solutions have emerged to connect customers with great local deals: SugarSave, FlutterToday and Seize the Deal which both Carly Harrington’s and Coupon Katie have covered in detail.  These sites represent a great opportunity as a customer to try something new (or get a great deal on something you love).

As a customer these sites give you the opportunity to save money on the places you love and give you the courage to try places you’ve yet to visit since you’ll get such a great deal. How good of a deal you ask? Well, Friday’s FlutterToday deal which was $50 of value at Baker Peter’s for $20 (60% off!) or SugarSave’s recent feature of $50 for $25 at Nama Sushi Bar - great deals, great places.

You’ve probably heard of Half Off Depot, which on the surface seems the same as the services above, and while they all offer great deals the method is different. Half Off Depot operates on a limited quanity model, there are 10 of the $15 for $30.  Whereas Groupon, SugarSave and FlutterToday are group buying sites.  There must be a minimum number of people who say “yes, I’d buy it” before the deal becomes active.  As a customer this may not impact you, but as a business owner this is an important point because it allows you to test interest without paying the price of operating at a loss.

If you’re a local business, this is a great opportunity! These sites exhibit what you sell in front of new customers at a steal of a deal. Let’s be honest, they certainly lower your margin on those products you sell because of the discount, but in exchange you get new customers in the door.  Additionally unlike other forms of marketing that will require an upfront cost - these services instead take a percentage off the ones that sell. While it would be unfortunate if you sold a low volume, on the upside you’ll only pay for what is sold.

You can also set a minimum number that need to sell for the deal to activate - that way you can protect yourself from providing an opportunity to a customer where you lose money.

You’ve also got your existing customers who may explore your offerings because of their savings.  Perhaps as a restaurant, they’d try that tasty appetizer or that delicious dessert that was just out of their price range before. Who knows, they might just fall in love with it?

The gist? If you’re in any type of retail you should check out the services above because the value you receive outweighs your risk.  Just keep an eye on your inventory, don’t blink - it will be gone before you know it.

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