Big social deal

With a little research, social buyers can really save.

By WENDY ALMEIDA, Staff Writer

Too-good-to-pass-up shopping deals have been around for years. They’re known as 50/50 bargains and offer the chance to buy a gift certificate for half its face value.

The deals may have originated on radio and television websites looking to reel in advertisers but many social networking sites have gotten on board and consumers are benefiting from these new ways of shopping for bargains. But file away that “50/50” term. The new vocabulary for these online deals is “Social Buying.”

Groupon.com is a national website that launched a Portland-based “Deal of the Day” earlier this year. LivingSocial.com is another national site featuring a Portland-based deal each day. Both websites offer incentives to users who tell their friends about the deals they find through Facebook and Twitter. If those friends join in on a deal, you may receive a further discount.

Some Maine-based companies have joined the social buying power network as well. In late 2010, the Bangor Daily News launched Maine’s Daily Deal (mainedailydeal.bangordailynews.com) to feature deals with business ties to the Bangor area. MaineToday Media, Inc., the parent company of Raising Maine, offers The Maine Deal (www.themainedeal.com). This deal-delivering site features businesses and products available in southern and central Maine.

There are other social buying options around the country, and there will likely be more Maine-specific sites launching soon because this type of online shopping continues to gain in popularity.

But there are a few things to keep in mind while doing your social collective buying.

* Read the “How it Works” or related-type tab because each social buying website works a little differently.

For instance, Borders launched www.bordersrewardsperks.com a while back and when I visited, I saw double Os referenced on the page. I had no idea what that meant and it took me a few minutes to make the connection that OO meant Overwhelming Offers (that site's lingo for a deal). At the time Borders did not have a clearly visible link to explain how its website worked but it has since added a more noticeable one (although it’s still not that obvious).

* Expect a delay in receiving your deal. These websites require a certain number of purchasers before their deal of the day is “unlocked” or “tipped” or whatever that site’s lingo is for having enough interested people to make the deal work. Typically deals are unlocked quickly when it’s a popular item. But if a deal is still “locked” and you really want the deal, sign up to unlock it. Once enough people sign up to unlock the deal, you’ll receive an email notification your deal is purchased. But if not enough people sign up for the deal, the websites will email to let you know the deal could not be purchased.

* Read the fine print of each and every deal you buy. The majority of these social buying websites explain that each buyer is responsible for reading the fine print of each deal purchased because conditions may vary. One standard across the sites is that you have to wait one day after your purchase before redeeming your deal.

Another standard is that there is typically no cash-back on the deal if you don’t use the whole of the gift certificate’s value during your visit to the business. Some deals do allow a second visit for unused balance but that’s more the exception than the rule. Know which option you have before you visit the business.

* Check the expiration date. Some deals have stipulations on what the purchased deal can be used for, or when it can be used. For instance, you might purchase a ski lift pass to a mountain but the deal is only valid for the current winter season. It’s a good policy to check the expiration date on each purchased deal to make sure you know how long you have to use it before it expires (typically there is a year expiration, but not always).

* The limit is usually one deal per buyer. There are options to “gift” a deal for a friend but you’re limited to only redeeming one for yourself. Again, read the fine print to find out how each site handles the “gift” option.

* Research your deal-making websites. Check out deals on each site for a few days to make sure it offers the type of deals you’re interested in before signing up for daily email updates. For instance, Groupon generally has more restaurant and food-based deals so it’s great for people who like to eat out. Mamapedia’s Sweet Deals offers a lot of baby-based equipment and clothing deals. MaineToday Media’s website features restaurants as well but has offered a few activity-based activities recently (bowling and an indoor play center for kids). The Bangor Daily News’ site has featured some spa deals in addition to eateries.

* Signing up for daily deal emails might generate some additional (unwanted) emails to your inbox. Most of these websites all reserve the right to share your email with other companies. After I signed up for LivingSocial’s daily email, my spam folder became host to a dozen more emails each day. But I liked the deals on LivingSocial so I put up with those other emails. Having a good email spam filter like those offered with Google, Yahoo, AOL or other web-based email providers, will ensure this isn’t a big issue.

Like all bargain shopping, a little time spent researching what’s out there will help you find the best money savers for your family.

Happy deal shopping.

Originally published in Raising Maine Magazine, March 2011