Angie’s List, Kudzu and The Washington Post’s new ServiceAlley are providing group buying promotions for home and trade services. But is group buying the right paradigm for home and trade services?
Regional Help Wanted Co Founder Eric Straus says “no.” Instead, Straus has launched 10LocalCoupons.com, which offers home and trade services the ability to include their coupons in an email flyer featuring 10 coupons. The coupons are created on a self-serve basis and cost $49 per month.
Straus believes the deal a day space has gotten too bifurcated with too much competition. They also have a difficult model to understand, and don’t really hit the sweet spot for home and trade and other “Val Pak” advertisers. “These are really DM dollars,” he says. Moreover, a straightforward coupon allows for more inventory than a main deal and two sides – the stock in trade for group buyers.
Indeed, Straus says his “Digital ValPak” like-service can reach more consumers, in part by building out a consortium among local media players, who each benefit from each other’s participation. As with Regional Help Wanted, consortium members split the proceeds equally, and promise to promote the service on-air (or on cable) with a certain number of remnant ads. Greater responses lead to more revenue.
In Des Moines, for instance, Clear Channel, Citadel, and Sago radio stations are participating, as is MediaCom, the local cable company. Although the site is still in beta, it is currently operating in more than 110 markets, says Straus.