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Consumers Band Together For Online Discounts

New Web Site Offers Deals If Enough Sign Up

POSTED: 8:14 am EDT June 22, 2009
UPDATED: 8:32 am EDT June 22, 2009

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Thousands of consumers are saving big with the help of strangers.

They're getting discounts on manicures, spa services and gym memberships, and doing it together, online.

NewsCenter 5's Shiba Russell reported that a "Groupon" is an online coupon that can be redeemed only if a minimum group of shoppers sign up for the same discounted deal.

"Feel like it's at least 60 or 70 percent off the price you would normally pay," said a Brighton graduate student who was one of 670 consumers who snatched up a 20-day pass to the Beacon Hill Athletic Club. They paid $29 for what could have cost $260.

"We're moving away from print ads, more to online marketing and so, Groupon, is by far the biggest response," said Lee Crabb of Boston Athletic Club.

Groupon launched its Boston Web site in March. More than 40,000 subscribers and one business offering one deal a day.

"It's sort of like taking the same model that you've seen with companies like Costco, where you're buying in bulk, only we're doing it for local goods and services," said Groupon founder and CEO Andrew Mason.

A $55 manicure and pedicure was marked down to $19. Salon Red & Spa sold nearly 1,500 Groupons for a recent promotion.

"These are people who are guaranteed to walk through my door. They're coming in and seeing who we are and experiencing the fullness of Salon Red," said owner Arthur Harris.

The collective buying power turns out to be a win-win for recession-starved business and cash-strapped consumers.


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