A new locally-owned, group-purchasing site, Localiter, recently launched in Austin that allows users to get huge discounts once a minimum number of consumers purchase a particular voucher.
How it works
Picture this; you wake up and check your inbox to find an e-mail from Localiter offering a 50% off deal to Lift Cafe. You open the e-mail and read more, discovering that you can pay $5 and receive a $10 coupon, provided at least 20 coupons are purchased.
So you sign up to pay the $5 and forward the e-mail to your friends and then post the deal on your Facebook and Twitter either because you really want to try Lift Cafe for the first time or because it’s one of your local favorites and you want to get a sweet deal.
Then, once enough people sign up for the coupon, Localiter charges your credit card and sends you the voucher, which you then print and take with you to Lift Cafe to get $10 worth of coffee, smoothies, and sandwiches.
Pros and Cons
Pro- huge discounts for buying a coupon and the opportunity to forward the deal to friends
Con- no discount if enough people don’t purchase the voucher
Pro- opportunity to reach new customers and convert them into “regulars”
Con- possibility of just bringing in old customers armed with huge discounts