Austin Deals - Facebook Sucks Juice From The Daily Deal Sites

By Author: Tariq Saeedi
Total Articles: 21
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Austinites are expecting a clear-cut change in their discount experiences as the social networking behemoth Facebook has launched testing service of its deals offer in Austin lately.

The city dwellers and tourists in the hi-tech city are currently regaling the local deals from the platforms of several daily deal sites. Groupon, LivingSocial, and other daily deal sites hold certainly the major market shares in the group buying industry.

Hardly any product has saved from the saws of collective buying that cut prices up to 90 per cent down. Meals for foodies and goodies for households come under the discounts. In short, group buying sites are making all attractions in the metropolis public.

However, the Facebook’s test service is said to bring with it special offers for the customers and not just low prices. Daily Finance reports the social forum is likely to broadcast backstage passes to Austin City Limits concerts. Or, similar fun pack that is out of public scope may be offered. The deals of local eateries, music related goods concert tickets and entertainments are included in the testing service ...
... launched in Austin, Atlanta, Dallas, San Diego, and San Francisco at once.

Will the new entrant pose threats to the deep-rooted daily deal sites in Austin catering to the bargain hunters? Some deal portals are dedicated to individual cities and they are spreading bargains on plenty of goods and services. 365austindeals is one such portal dedicated completely to portray best deals in Austin of restaurants, massages, hotels, events, etc.

Given the extensive network spreading over 500 million subscribers and technology assets of Facebook, it seems that Groupon (70 million followers) and LivingSocial (28 million subscribers) have to save their skins. Deal aggregators such as Dealaboo, Yippit, and Dealgator that are expanding subscribers-bases of group buying titans cannot become defenders of market shares, analysts observe.

Merchants may be attracted towards Facebook because of the technology’s edge social networking site has over longstanding group buying sites. A merchant tells AOL money & finance publication she sees customer’s experience building approach of the social utility stands out. Price-cut would be considered as advertising budget when customers are more likely to come back, she adds.

The commission structure is not publicized, but is believed to be lower than that prevalent in the market. Daily deal sites have to shred commissions to goad fleeing partners. Some of them including Groupon eat up to half the revenue, reports the Associated Press.

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