Move over Groupon. There's a new group buying club in Canada. Deal of the Day
launched last week and is currently offering deals in Toronto and Montreal. This all-Canadian group buying club, owned by RedFlagDeals.com and Yellow Pages Group, believes it can serve consumers best by taking a slightly different approach to the group buying experience by placing a larger focus on merchants.
At first glance, this might seem counter-intuitive, but founder Derek Szeto believes consumers will benefit from the relationships Deal of the Day has fostered with merchants. After all, for group buying clubs to be able to offer the deals consumers want, merchants have to be interested in participating.
And for merchants to want to participate, Szeto says they're looking for two things, "First, a risk-free way to be able to get customers to their door. [With Deal of the Day], they don't pay anything upfront. They pay only a commission based on what gets sold. And second, some level of promotion, of generating awareness and hype so people know their business exists." Because of the well-established Yellow Pages and RedFlagDeals.com platforms, Szeto believes Deal of the Day can offer more awareness and more visibility to merchants, leading to more successful deals for consumers.