Many of us know what Groupon is and it’s fair to say more than a few of us have used it before. This form of shopping for deals is fun and can save quite some money when the goods or services being offered are what we are looking for. In fact, there are some who are “addicted” to it.
The acceptance of such an e-Commerce approach by consumers has seen other deal websites spring up here and there to capture the growing pool of customers looking to spend money, as long as attractive deals can be had. Of course, not all of them are useful or even needed, but that’s the way the online world is.
Who Is Spungry?
(Image credit: Used with permission from Spungry.)
Enter Spungry, a new and exciting F&B deal shopping idea conceptualized by a Singapore company, with Joe Augustin (a popular DJ) and his partners at the helm.
As seen on their Facebook page, Spungry will let you book deals for just a down-payment of $1 apiece, so there’s no need to fork out the deal price upfront. Now, that’s way cool; but it’s not all.
In their own words, they are “the world’s first and only ‘food deal site with a conscience’, restoring the original recipe group-buying was founded on – giving customers super savings and getting merchants better business.”
Spungry’s approach effectively turns the Groupon concept on its head, challenging an established company and its business model with a revolutionary way to serve both consumers and F&B merchants alike; and make money and a brand name for themselves too. What a great idea for getting a business online!
So, what makes Spungry different?
Spungry’s Premise: Win-Win-Win
Most online deal offer sites can be said to be self-serving, as their owners are more likely focussed on growing their commissions from merchants. Whether they provide excellent service to consumers might be a secondary consideration; one good “test” is how fast they’d settle refunds.
Mind you, businesses exist to make money, be they offline or online. But there can be more rewarding ways to do it, keeping in mind the interests of all parties: customer, seller and middleman. Tall order? Perhaps, but Spungry’s mission may just turn the tables if they can score wins on all fronts…
Consumers Win — $1 Booking; Pay Later; Deals Galore
As mentioned earlier, you need to pay just $1 to book the meal deal you want. When you actually visit the merchant’s business to partake of your chosen deal, you settle the bill then and there as you would normally, only that you don’t pay full price. So, unlike the Groupon way, your money isn’t out of the pocket until your actual visit.
This no-brainer way for consumers to secure deals can spread like wild fire, which in turn can generate more than the critical mass for any deal to be “on” (using Groupon’s lingo). More interested consumers mean more potential for merchants to grow their customer base, leading to a wider variety of deals. Now, wouldn’t that be consumer paradise?
Merchants Win — No Payment Delays; No Commissions; Wider Reach
All businesses require good cash flow management, so F&B merchants are no different. But what’s different with Spungry’s deal for merchants is the latter get paid directly by customers, not wait for “your (their) share of the revenue” to become available, as stated on its FB page. This assures no funds are unnecessarily held up by a third-party deal site.
Also, the consumer-friendly approach to deals that is Spungry will provide merchants a lower-cost marketing platform to reach customers. Since Spungry doesn’t take a cut from merchants, deals can be more attractively priced to win over more people. All in all, a positive feedback loop that can lead to more sales and profits.
Spungry Wins — Customer Base; Brand Name; Marketing Potential
Last but not least, Spungry gains by establishing strong Web presence from high volume traffic and good social media interaction. And building a targetted list of clients who are interested in F&B. With proper database management and mining, this list can turn into a money-making powerhouse when used sensibly and ethically. (See our closing note.)
Of course, that $1 booking fee is nothing to laugh about — it is actually quite an astute business move that sets their brand apart. In fact, those dollars could add up quickly to something sizable when Spungry’s database of clients grow virally. That is a very real possibility, a key attraction of being online.
We Can’t Wait For Spungry to Launch
Seriously, with such a triple-win model for everyone, who wouldn’t want to get their hands on Spungry deals asap? We eagerly await their launch; in the meantime, we watch keenly what develops over on Facebook. (BTW, if you haven’t gone to give their page a Like, we suggest you do so and lend them a hand to launch with a big bang.)
What We Hope Spungry Won’t Do
Don’t spam the client base! That’s a no-no, a sure-fire way to increasing unsubscribes. Spungry need to think of a creative way to keep its clients engaged and interested, yet spare their inboxes and phones from incessant promotions. For the record, that’s how I got off Groupon’s list in a hurry!
Without doubt, Spungry is here to stay. We are excited and rooting for them, as you can gather from this article. Sublime Success sincerely wish Spungry a smooth launch and epic success online