Newbie here

[grabbd]

Hi everyone,

My name is John and I am one of the creators of Grabbd.com It is a daily deal website similar to Groupon.

I created the site after a business I tried to get listed on Groupon.

My site will help you get customers for a lot less than what Groupon charges for commission.

We're a small company in Columbus Ohio and we hope to go live with the site in the next few weeks so we are looking for small businesses to get listed.

Thanks.

[Patrysha]

Welcome to SBF

[grabbd]

Thank You. Glad to be here.

[vangogh]

Welcome to the forum John. I know Groupon is the 800 pound gorilla in the industry, but I haven't heard of many competing sites. Makes sense to enter the market. Just a thought. Often when taking on the big layer it makes sense to start in a niche. Is that possible for you? Like being the group coupon site for a specific industry of in a specific location.

Thanks for joining the community.

[Business Attorney]

John, welcome to the forum. I'll be interested to follow your progress. Sounds interesting. In Chicago, where Groupon started and is big, there are several websites that are variations of the idea. But it seems like a concept that should have room for several competitors in most larger markets.

[KristineS]

Welcome to the forum John. Good luck with your new site.

[cbscreative]

Welcome aboard. I'll agree with vangogh to look for a way to stand out. Just trying to be another Groupon is not the best approach. Look for a weakness and do something better. That is also a good example of the kind of useful insight you will get here on the SBF.

As an example of being different, many people have wanted to take a bite out of eBay, none trying to be another eBay have succeeded, not even someone with the clout of Amazon (yes, Amazon tried to take them on too). There is a niche site called etsy that has done very well with a niche. Do a study on that for ideas.

[grabbd]

Thanks for the positive response. I think one of the ways that we will stand out for a small business is that since we are a small company we do not have a lot of overhead so we can charge a lower commission. This is way less than Groupon. Also we plan on offering more than just a daily deal and a small side deal that Groupon does. We plan on having multiple categories so people have more of a choice per day. I noticed that it seems to be a Massage or Spa package every other day.

Another thing that we will be adding in the future if it works is the ability for businesses to sell products at a huge discount on the site. That is just a thought but it may be too much. We'll fine tune it.

Anything you guys suggest is appreciated and if any of you have a business that you want to get listed we're running a special for the rest of Nov where our commission rate will be well below what is standard for other sites. Our goal is to build up businesses. Message me or visit our website to learn more.

[vangogh]

Competing on price usually isn't the best idea for a small business. I know it seems like it would be, but competing on price is more a strategy for the larger player in the market. For example say you grow to the point where Groupon sees you as competition. They could beat your commission easily while still making a big profit. You wouldn't be able to get into a price war though and you'd probably watch your customers move over to Groupon. At that point they go back to their old commission structure.

You're likely going to be better off charging more, but offering some extra value that Groupon doesn't. Find out what current Groupon customers complain or what Groupon currently doesn't offer and use that as your competitive advantage.

One reason I suggest the local angle is it lessens your advertising expense and also because people can be very loyal to their own community. I'm a web designer and can work with clients anywhere around the world, yet I still find people who contact me, because they specifically want to work with someone locally. Odds are we'll never meet and conduct all business through email and over the phone, but to them I'm still local.

[grabbd]

VG,

Thanks for the response. I am in talks with a couple of local businesses that have run some ads on Groupon and the biggest complaint they have so far with Groupon is the large chunk of commission that is being taken out of each sale. They were wary at first talking to me but when I explained about our lower commission they seemed very receptive to it. I think I am on the right track with this and I will definitely keep everyone updated with how it goes.

[vangogh]

If that's what your customers are saying then it makes sense to go with it. My comments are more a general one. Historically small businesses haven't been able to sustain competition on price and usually the better strategy is to compete on value. The problem with competing on price is someone else can always offer a lower price (or in your case a better commission). Companies that attract customers through price have to then continue to lower prices or their customers leave. Only large companies have the resources to continue to get into a price war and survive.

You know your business better than I do and I won't pretend to know more about it. If you think you're on the right track you should definitely follow that track and not listen to me. I wanted to point out about competing on price in general, but I'm definitely not trying to tell you what to do. More getting you to think about your strategy so you can make it as sound as possible.

[phanio]

Welcome - look forward to watch your company grow. Don't be affraid to try new things and see what works and what doesn't. Also, regarding price or diversity of products/offerings - ask your potential customers what they want - what they can't get from groupon - then do that and do it well. Know that you have two sets of customers - the businesses that list (you need to offer them services they can't get elsewhere) and those that come for the deals (you need to provide them services they cannot get elsewhere). Welcome.

[Steve B]

Which market are you going to be in first? How are you gathering your e-mail addresses?

[grabbd]

Right now we are concentrating on the Columbus market since that is where we all live and it is easier for us to meet with the businesses. We have other cities listed. We can add any city as long as we get enough interest in it. We are using Facebook, Fiverr, Twitter and some ads on craigslist to get subscribers. It's working so far. I just added your facebook page to my likes. If you ever plan on expanding the pet food delivery into Columbus let me know and I'll help get it started for you.

[closely]

Best of luck in your new venture. There seem to be over 200 "groupon clones" in the market, though many of them are private-labeled daily deal sites sponsored by publishers. Differentiation will be key and finding a vertical or niche market would seem to be key.

[maintenanceguy]

I think you should target the business that groupon leaves on the table. There are several businesses that they dont want to deal with because they are services and they dont have a cut and dried product. Take my business for example, if you offer a one time service at a below average price, you get the benefit of half the profits but I get the benefit of getting paid to make a sales call because that is half of what my one time visit is. It is a sales call for me to sell you a full years service. I would definately sign up for something like that. The customer still gets more than their money worth but I now have a new contact that would not have signed up had they not been interested in my service in the first place. Just something to think about.

[ruth]

Vangogh, I needed to hear this: "Historically small businesses haven't been able to sustain competition on price and usually the better strategy is to compete on value." THANKS!

[ruth]

Dan, I love the maintenance service that you offer! What a good idea!

Is your business doing well - did it "catch on"?