We are a big Groupon family in my household. In fact I asked my wife to tally up our Groupon purchases in the last year. The amount? $3,722.
And since Groupon typically provides at least a 50% off discount on purchases of goods and services, this means my wife and I purchased over $7,000 last year in “stuff” through Groupon.
Crazy when you sit down and compile these numbers!
If you’re not familiar with Groupon, it’s essentially a program through which you can purchase goods and services at deep discounts. How deep? 50% on average.
Groupon, as company, while has suffered badly in the stock market, has done wonders for small businesses from a marketing and exposure stand point.
For example, this is how I use Groupon as a small business owner.
But in this post I want to focus on how I use Groupon as a consumer, and how you can save even more when buying a Groupon next time.
Here is how we do it in our household. Both my wife and I are signed up for Groupon notifications.
We have created a profile and pre-selected the various products and services we are interested in within our desired travel radius. If you are a Groupon user I recommend you do this so you get relevant offers in your inbox.
Once an offer that fits our preferences becomes available we receive an email notification from Groupon. But when we get the email, we do not click the link inside it to purchase the Groupon.
Instead, we log on to www.discover.com and purchase the Groupon through Discover’s “Shop Discover” page online. By doing this we get an additional 15% off on our purchase.
For example, if I receive a Groupon email notification for a massage priced at $37 with an original market value of $75, and if I purchase it through Discover, I get an additional 15% off and my net cost is $31.45 ($37 less a 15% discount). Basically you get an even bigger discount than what Groupon is already offering. This discount appears as a credit on your Discover credit card statement.
This cost saving strategy is not limited to Groupon. Similar to how affiliate marketers online promote products in exchange for a commission from the vendor, Discover Credit Card has also partnered up with several businesses to offer their goods and services through their website at a discount. I am not sure how much Discover benefits from the relationship, but as a consumer we sure do.
We did not get a Discover credit card just because of Groupon, although if you are purchasing a significant amount the savings could add up and make it worth getting the credit card. In our case, spending $3,722 in Groupon purchases resulted in a savings of $558.30 (15% of the purchased amount).
We both have always had Discover and like it for several reasons. I find Discover’s customer service to be one of the best. The cards we have carry no annual fees, and we get anywhere between 1-5% cash back on all our other purchases. If don’t use Discover and are in the market for a credit card that pays cash back on purchases, I highly recommend looking into Discover (my affiliate link).
And if you are not a Groupon user, where have you been? But more importantly, you can check them out here (my affiliate link).
There are two components to expediting your wealth building process. The first is to save more and the other is to make more. Constantly learning and striving to do both add up to get you financially ahead over time.
While this article does not share a method to “make” money, it does share how you can save more of it when buying a Groupon and as a result keep more of it in your pocket.
What about you – are you addicted to Groupon like we are? Do you have any other tips on maximizing the effective use of Groupon? Will you purchase more Groupons now with a Discover credit card after realizing you can save an additional 15% on your purchases?
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