Great American Deals ~ Revolutionizing the Daily Deal Industry

The daily deal industry is a multi-billion dollar industry. Internet based marketing is not a new concept and the ecommerce business model has been around for about 10 years.

The premise is that consumers are offered substantial discounts by merchants for products and services through a deal website. The website then displays the deal for a period of 24 hours or more, delivering customers to these merchants, and in return the site receives a portion of Franchising USA the revenue generated. Groupon was the game changer, who in 2008 stepped into the then flatlined market, and soon became the second fastest online company to reach a billion dollar valuation.

One of the primary reasons for the downfall of the early innovators was the lack of website traffic. Additionally, most computers were not mobile and there was a disconnect between consumers and the marketplace. Other problems arose with the daily deal business model because it seemed to promote single use customers for the merchant and irrelevant deals were being sent to the consumer such as advertising a discounted gym  membership to someone that lives 100 miles away.

With the advent of social media, shopping online with mobile devices and geo targeted advertising, consumers can now see a product or service they like, capture the savings and purchase the discounted goods and services they desire. Although revenue forecasts are projected to see strong growth in the coming years these companies must utilize social media and mobile computing while creating value for both local customers and local businesses.

A company that is taking a community based approach to this growing industry is Great American Deals, led by CEO, Michael Silber and COO, Mark Vannuki. They are revolutionizing the concept by bringing it to the heart of American Commerce and for the first time in the history of the category they are franchising! It is their hyper local formula, the community conscious “Giving Back” component and the dedication to local businesses that makes the Great American Deals approach a real game changer. Pat Sajak, the iconic 30 year host of television’s most popular game show, Wheel of Fortune, is a company founder and managing partner  that ads celebrity appeal to the brand. Mr. Sajak believes strongly in the operational model that gives back to the community, supports local business and aims to revitalize Main Street America in a digital age. “Not only do we look for the ideal community but we are eager to find the ideal franchisee within that community,” says Mark Vannuki who also serves as Director of Franchising. “The community must have an abundance of diverse locally owned businesses, a strong school system and residents who have a willingness to become engaged in the community. As a franchisee you are woven into the fabric of the community.

You are probably on the school board or the PTA, or serve on a local charity, you know the local businesses and are a long time resident with a desire to do more for your neighborhood. When it comes to desirable deals  we offer a huge range: from handyman services to elaborate dinners, family bowling packages to spa treatments and the list goes on. “The daily deal mix is very important and our franchisees aim to cater to the tastes of the local consumer base. As far as what size communities we like to target, we find that our business model works extremely well in areas with 200 – 300 thousand residents,” Vannuki explains. The concept has been growing rapidly since the company started franchising in early 2013. With 10 franchises in Southern California, Great American Deals is hopping borders and currently expanding nationally. Franchisees take part in a thorough training program at the Great American Deals headquarters in Beverly Hills learning how to launch, operate and grow their franchise. The franchise fee is $35,000 for a turn-key customized website, mobile app, marketing tools, association with the highly visible brand, ongoing “As a franchisee you are woven into the fabric of the community… you know the local businesses and are a long time resident with a desire to do more for your neighborhood.”

Franchising support and full disclosure of the hyper local formula. “The website is the hub of the offering and we want it to have a local feel” comments Michael Silber. The site includes constant updates of local content  such as sporting event schedules, where to find the closest famers’ markets, activities for kids and lots of other events and information that appeals to people within the community which ultimately draws more people to  the site.

Great American Deals’ commitment  to community organizations does not stop at commerce. One of the pillars of their approach is to provide support for local schools, community charities and non-profit organizations. The ‘Give Back’ program allows consumers to have one dollar of their purchase donated to a school or charitable organization that they select. This program not only benefits local organizations that badly need funds but it creates customer loyalty for Great American Deals and merchants love it too! To date, over $185,000 has been put back into local communities.

“People get a lot of daily emails sent to them” says founder Michael Silber. “With our hyper local approach we are bringing locals to businesses nearby and that creates customer retention and customer loyalty…the businesses that we work with love this. With our business model and the right franchisees, we can expose a lot of small businesses to a large amount of people who live and work in the community.” As the industry continues to grow with competitors vying to sign up merchants for one of a kind deals, small to medium sized businesses must make decisions on a daily basis whether to run a daily deal and if so, which site? The answer is not yet clear, but as Great American Deals continues to deliver relevant deals to local consumers, and support local businesses in a community conscious manner, it will become a top choice.

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