In today’s challenging economy, wise consumers are often on the lookout for a good sale because hard earned money should be spent wisely. Nowadays practical people choose to avoid splurging on things that will upset the budget.  Group buying sites have come up with an idea to attract consumers and encourage more frequent spending.

What are group buying sites?

According to Pinoymoneytalk.com, group buying sites rely on the influence of “collective buying.” Individually, consumers lack the power to negotiate price drops or appeal for good deals.  However, when consumers combine their purchasing forces, they gain bargaining power as a group.

The rise of online group buying sites has given consumers the privilege of availing big discounts that can fetch as high as 90 percent off from the original price. Group buying is a great way to enjoy online shopping without creating a big hole in your pockets.  Group buying is also referred to as collective buying, social buying, group purchasing and crowd buying.

Deals promoted by group buying sites are offered exclusively on the sites.  Discounted products and services may not be available anywhere else. In fact, if you see a great deal on a particular group buying site, chances are you won’t find the same offer from the actual store itself.

What are the popular group buying sites in the Philippines?

Here are some of the well known group buying sites in the country (not arranged in any particular order):

1. CashCashPinoy - www.cashcashpinoy.com/

CashCashPinoy was established in 2010. The inspiration behind the Internet company started when the people behind the site were out looking for good bargain sources in the mall.  During their bargain hunt, they realized that shops were offering same items at different prices. The group decided to set up an online platform to offer Filipinos different products and services at discounted prices which led to the rise of CashCashPinoy.

Office: 8/F Lepanto Building, Paseo de Roxas, Makati City, Metro Manila

2. Groupon Philippines - www.beeconomic.com.ph/

Groupon was first launched in the U.S. in November 2008.  The Internet company reached $1 billion sales in just a matter of seventeen months. The company was featured on Forbes magazine in August 2010 and was listed as one of the Top 50 websites of 2010 in TIME magazine. Groupon has active subscriber base in forty five countries.

Groupon Philippines was established in February 2011. It is owned and operated by Beeconomic Philippines Inc. The site offers daily deals in selected cities across the country.  Groupon Philippines offers wide range of shopping and getaway deals.

Office: 1D La Fuerza Plaza 1, 2241 Don Chino Roces, Makati City, Metro Manila

Contact number: 720-5929

3. MetroDeal - http://www.metrodeal.com/

MetroDeal was launched in early 2011. The Internet company has sold over 500,000 deals in the past 6 months. It offers wide range of shopping and travel deals.

Office: The Enterprise Center, 18F Tower 1, 6766 Ayala Avenue cor. Paseo De Roxas
Makati City, Metro Manila

Contact numbers: 218-2956 / 904-7318 (Mondays-Fridays, 9am to 6pm)

4. Deal Grocer - www.dealgrocer.com

Deal Grocer features exclusive, limited-time deals on various products and services from best merchants across different cities in Asia.

Another group buying site called Pakyaw has partnered with Deal Grocer.

Office: 4304, 43F China Resources Building 26 Harbour Road, Wanchai Hong Kong (no listed Philippine office address)

Contact numbers:  Philippines: +63917 5GROCER, HK: +852 94356390

5. Ensogo - www.ensogo.com.ph

Ensogo was incorporated in 2009 in Thailand.  The company was established in Manila in July 2010.  It offers consumers discounted online deals in selected cities across the Philippines.

Office: 2/F W Office Building, 28th St., Cor. 11th Ave., Bonifacio Global City, Taguig

Contact number: (+632) 555 - 6868

6. BUYanihan - http://www.buyanihan.com

BUYanihan was launched in August 2010 in Metro Manila.  The site features daily new discount deals on shopping and travel.

Contact number: (632) 5538 BUY (Mondays - Fridays 9am - 6pm)

How do group buying sites work?

• Most group buying sites require customers to register and log-in to their accounts to avail of featured deals and track past deals.
• The original value, discounted value and savings of each featured deal are specified on the site including the time left to buy the deal. Details of the deal are also stated. The number of customers who availed of the deal is constantly updated.
• Customers who want to avail of a specific deal can click the “buy” button on the site and enter credit card details. Some sites accept other modes of payment such as PayPal.
• Featured merchant offers customers specific products and services at discounted rates provided that the group buying site reaches the specified minimum number of purchases. When the minimum number of sales is achieved, the deal is activated and customers who signed up for the specific deal become entitled to them.  The customers are then charged through their credit cards or other chosen mode of payment.
• Confirmation email is sent to the customers with printable voucher. Clients can also access vouchers directly on the site.
• Some group buying sites reward customers with P100 for every referral to the site. Rewards can be accumulated and used to purchase voucher on the site.

Online deals shopping tips

There are many interesting and irresistible deals on group buying sites.  Here are some helpful tips to guide you on your online shopping.

1. Avoid impulse buying. If you see a great deal, ask yourself if you really need it before making a purchase. If it’s a restaurant (food) or travel deal, make sure that you have time to avail of it.  Don’t waste your money buying deals that you won’t be able to use.

2. Make sure that you read the details and fine print of the deal before finalizing the transaction.  Be careful of conditions such as expiry dates.  It’s also helpful to do some research about the merchant.

3. Determine if the site has refund policies just in case you encounter problems with a particular purchase.

4.  If you have questions about the deal, call or email the merchant to get more details.

5. Keep track of unused vouchers. Take note of booking and redemption dates to avoid wasting vouchers.

Photo: “Deals” by Rachel Yapchiongco. Some Rights Reserved.

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Rachel Yapchiongco, also known as Rach to her friends, is a Psychology and Marketing Management graduate of De La Salle University.  She took up MBA at the same university.  Rachel is a full-time mom to a charming young boy and married to an entrepreneur with a passion for cooking. She shares parenting experiences and slices of everyday life on her personal blog called Heart of Rachel.