There have been some serious holes found in the group discounting industry that haven’t been overcome yet. Complaints from businesses utilizing Groupon and LivingSocial have pointed to several issues:
- The required discounts are so steep that it hurts the businesses.
- The payment on the discount doesn’t come immediately, causing severe cashflow issues that have buried some businesses.
- The consumers that they attract are out for the special only and never return.
- The companies are aggressively trying to sell businesses all the time.
Plurro has flipped the group discounting model on its head. First, it’s the consumers that drive the cash mob. Once enough of your friends sign up to go to a venue or retail outlet, Plurro contacts the business to what kind of discount they can offer. The Plurro Cash Mob shows up and has to show their mobile ticket and enter the recept amount in order to get the discount. This is verified by the business owner.
All the tickets are added up by Plurro and the business pays a 5% fee to Plurro for the business. It’s a great solution and overcomes each of the issues above. First, the business can participate if they want and set the discount themselves. Next, they get paid up front and then pay Plurro. Most important, since it’s friends using the system… it’s as much about the venue and having a good time as it is about the discount. And lastly, the only reason why Plurro is calling is because there’s already a cash mob waiting!
Here’s an overview of Plurro:
Plurro is integrated with Facebook and allows you a number of different ways to plan and invite your friends to your next cash mob.
Plurro is launched in Northern Virginia and is now launching in Indianapolis. We’re going to test it out – it’s a great excuse to get the social scene back on track here locally! Download Plurro on your iPhone – Android is coming.