The global coupon industry has reached an all-time high and since its inception more than 125 years ago, coupons have evolved from traditional newspaper cut-outs into new digital formats. In a busy marketplace where an increasing number of consumers are looking for ways to save money, startup Deals of Scale believes it can find a unique niche through reinventing the common coupon.
Deals of Scale’s unique product is socially amplified coupons, which is defined as “coupons that increase in value as more people want them.” As people share coupons, the discount increases until it reaches a maximum value. Coupons are free to claim, although the business decides the minimum number of coupons that must be claimed in a certain time period. If this number is not met, the coupon is not distributed. Coupons are delivered through a Facebook Application that fully integrates with business Facebook Pages.
The business model behind Deals of Scale sets it apart from daily deal websites. Deals of Scale only charges a maximum of 10 percent of merchant revenue, dramatically less than the 40 – 70 percent that’s common for daily deal websites. Through only charging 10 percent, Deals of Scale believes it can attract more businesses to participate and also encourage them to offer better deals using Deals of Scale’s platform.
One of the key strengths of Deals of Scale is the flexibility it gives to merchants. Daily deal sites often require merchants to negotiate discount conditions and schedule the discount in advance. In contrast, businesses that work with Deals of Scale have full control over the volume, price, time, and expiration dates of socially amplified coupons. Additionally, businesses can run group deals as often as they want, allowing them to quickly set up deals and structure them in a way that creates intended results.
Because of the low cost of doing business with Deals of Scale, the company is able to cater to national, local, and digital businesses. Through creating a new innovative approach to coupons, Deals of Scale hopes to make traditional coupons a relic of the past.