How it Works
HOW IT WORKS
HISTORY / EVOLUTION
The group buying practice is an age-old Chinese way of consumers to get discounts in exchange for the huge volume of buying orders that the group would generate. But it was only in late 2008 that this age-old Chinese buying practice was given a modern spin, i.e., what had been offline became online.
The tipping point, so to speak, became evident and glaringly inevitable in late 2008 because of the confluence of technological advances. The computers, smart-phones, tablets, internet, e-commerce and social networking (Facebook, Tweeter, etc.) were all pointing to the birth of online group buying.
In November 2008, Groupon was set up by Andrew Mason, Groupon’s CEO, to service the retail buying needs of a Chicago online community. Since then what started as a small community business has grown so fast and has spread swiftly across the US and, thence, worldwide through Groupon’s overseas branch offices. To date, it is estimated that Groupon is a multi-billion-dollar online group buying business.
According to some reports, there are now approximately 500 group buying companies operating locally in countries outside the US.
HOW THE CONCEPT WORKS
The Original Business Model
If subscribers to a discount website are attracted to a discount offer on a deal, they enter their payment details online and wait. Once the target minimum number of prospective buyers sign up for the same offer, the deal is confirmed and closed. Thence, the owner of the discount website starts receiving purchase payments online and, in return, emails vouchers to the buyers. The vouchers are then redeemed by the buyers at the merchant’s business outlet in exchange for the product or service purchased. The website owner finally remits cash payments to the merchants, net of the website owner’s selling commission.
The Philippine Industry Business Model
The Philippine business model prevalent in the industry works almost the same as the original one. As bruited about in the industry, foreign businessmen were responsible for introducing into the country the online group buying concept. But with the passage of time, what has been introduced into the country has been an altered one in that the minimum threshold of buyers is no longer being followed. For as long as the discounted deal is still generating sales, the deal is on. In some instances, this situation has created problems for the merchants with limited capacity to accommodate the huge volume of buying orders generated most particularly by the big industry players. Unserved buyers have no recourse but to ask for refunds; if not granted, they ask the DTI to mediate.
The DealAmigos Business Model
DealAmigos is operated by highly professional businessmen who had worked with some of the country’s reputable, well-established and progressive companies. With this, they bring into Dealamigos not only a wealth of work experiences but also the best practice as observed in these respected and esteemed companies.
As such, it is DealAmigos’ management policy to strictly and consistently adhere to the highest moral and ethical standards when transacting business with both merchant-clients and buyer-clients. And this means working closely and harmoniously with these two parties without compromising their respective interests.
Within this policy framework, DealAmigos applies the group buying concept by always taking into account the productive / operating capacities of merchants to accommodate efficiently the buying orders generated by each deal offer. Whenever capacity limits are reached, the deal offer is taken offline with the mutual consent of both merchant-clients and DealAmigos even if the deal offer is still generating sizable volumes of buying orders.
Overall, thus, the DealAmigos business model hews closely to the original business model for group buying with a minor modification on when to end the deal offer.
HOW IT WORKS FOR VOUCHER BUYERS
The DealAmigos business model works for the full benefit of its buyer-clients. Shopping online is convenient and hassle-free, sparing voucher buyers the inconvenience of travel and squeezing through the thick crowd of buyers in malls, department stores and other business establishments. Apart from this, they are accorded a wide but safe array of payment options using their credit cards and debit cards. Those with no credit cards can course their payments through the numerous 7-11 outlets spread nationwide.,
Furthermore, cardholders are well protected from fraudulent or unauthorized use of their credit / debit cards because all payment transactions are religiously filtered and thoroughly scrutinized by DealAmigos’ three reputable payment processors, viz., Mozcom PayEasy, PayPal, and Peso Pay.
The DealAmigos client-buyers are likewise assured that the products / services purchased at discounted prices are all in conformity with the specifications and terms stated at the DealAmigos website. The deal write-ups are never played up to give client-buyers false expectations. Moreover, with the productive / operating capacities of merchants always taken into account, the client-buyers are assured that their vouchers will always be honored, as redeemed, by the DealAmigos’ client-merchants. No need to ask for refunds nor to file a complaint at DTI.
All told, DealAmigos offers its client-buyers convenient, hassle-free, safe and well-secured purchases of high-quality products and services at deep discounts within the comfort and safety of their homes and offices.
HOW IT WORKS FOR CLIENT-MERCHANTS