People Power

Bringing people together for a common cause has proven to be a powerful tactic. It has worked to create social change, influence politics, and bring awareness to environmental issues.
On a commercial level, people have banded together to help them get the best deals. Producer and consumer cooperatives have existed for centuries so that members can get the best deals in retailing, housing, utilities, banking and agricultural interests. Warehouse clubs give better deals by providing products in bulk to a large number of their customers, and there are many organizations that broker deals or negotiate discounts on behalf of their members. In all of these situations, when a large number of people come together to make a purchase en masse it results in big discounts for them and a quick infusion of cash for the businesses.
The Internet has already changed how people communicate, learn and shop, and now it’s changing the ways that businesses are promoted. In the last couple of years, individuals have been harnessing the power of the Internet and social media to get the best deals on food, fun, and fitness. The electronic medium has the ability to bring hordes of people together very quickly to get deep discounts from sellers through what is known as “collective buying power.”
How deep? We’re talking about discounts from 50 to 90 percent on local and national brands. Organizations such as woot.com, letsbuyit.co.uk, and yugster.com allow individuals to save big on consumer goods. If you’re looking for health, beauty and wellness products, us.wahanda.com offers more than 45,000 professionals and advice, as well as great deals. For those with a hankering towards more upscale fashion and luxury brands, then the Gilt Groupe at gilt.com can satisfy your needs while saving you up to 70 percent.
Some of the sites offer different deals periodically, but they require a minimum number of people to buy them in order for the deal to go. For instance, a fitness gym might have an offer of 50 percent off for exercise classes if 40 people are willing to buy it. If the minimum number is not reached before the time runs out, no one gets the deal and no one is charged.
By utilizing collective buying and social media, businesses are able to get hundreds and sometimes thousands of new customers literally overnight. Requiring a minimum number for the deal to be valid, guarantees that a business will earn a specific amount if the sale goes through, and customers have a chance to try something new at a great value. Here are some other benefits that a business gains from participation:
Full control. They have control in setting the minimum number needed for the item to be sold, and the discount amount. Even though the margins are lower, a minimum volume ensures the business comes out ahead.
No risk. Typical advertising requires an upfront purchase for an ad with no guarantee on the number of items that will be purchased. Most of the sites I researched only take a portion of what is actually sold, and if the deal does not go, there is not cost.
Measurable activity. Business owners know exactly how much is purchased from the website during the period of time it is offered, and they can check the site periodically to see what the current tally is. Can other forms of advertising offer the same ability to track where results are coming from?
Repeat customers. The type of people who are attracted to this kind of promotion are Internet-savvy, have more discretionary income, are better educated, and they are willing to try new places. They’re not your typical bargain hunter who will drop a business in a heartbeat to find a better deal somewhere else. If they like the business, they’ll return.
Most of the businesses that have used this method of promotion have had a very positive experience. In one study, 97 percent of the businesses asked to participate again.
Even though “people power” has proven to be extremely effective to connect huge numbers of people with businesses offering great deals in the United States and England, Saipan lags behind in offering something similar to the populace. In fact, many businesses here haven’t even discovered the on-ramp to the Information Highway. If you’re one of those businesses, maybe it’s time to start your engines.