Groupon groupies

Admitted addicts feverishly snap up daily deals dangled by websites. But using them all - that's the challenge.

August 03, 2011|By Gregory Thomas, Inquirer Staff Writer
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  • The LivingSocial coupon , top left, that Kate Adams would use at M Restaurant. Polly Chung, top right, hands in a Groupon for a discounted massage at Just Calm Down Spa in New York City. She buys "great deals" daily, and has a stockpile stretching into April 2012. Above, Adams hands her coupon to waiter Rich Kodis at M Restaurant.
  • The LivingSocial coupon , top left, that Kate Adams would use at M Restaurant. Polly Chung, top right, hands in a Groupon for a discounted massage at Just Calm Down Spa in New York City. She buys "great deals" daily, and has a stockpile stretching into April 2012. Above, Adams hands her coupon to waiter Rich Kodis at M Restaurant. (MICHAEL WIRTZ / Staff Photographer )
  • Courtesy of Polly Chung
  • Eran Davidov (left) and Yael Gavish are founders of Lifesta, a resale site where overenthusiastic buyers can unload coupons. (Lifesta )
  • MICHAEL WIRTZ / Staff Photographer
  • Kate Adams studies the menu at M Restaurant, where she'll use a LivingSocial coupon (on the table). She's bought about 150 Groupons since signing up last year. "My friends make fun of me," she says, "but they benefit. . . ." (MICHAEL WIRTZ / Staff Photographer )

Part of Polly Chung's morning routine, while sipping her coffee, is to peruse the 100 or so daily e-mail alerts that stream into her in-box each night. They come from Groupon, LivingSocial, and dozens of other deal-a-day websites offering hefty discounts at nearby businesses that bank on a consumer's compulsion to seize a good deal before time runs out.

More often than not, Chung, a middle-aged New Yorker, buys something - two-for-one movie tickets or maybe a visit to the acupuncturist - and adds it to a spreadsheet she created to track the hundreds of deals she's purchased.

"I'm a Groupon-aholic," says Chung, happily. "It would be a rare day that I don't buy something, because there are so many great deals to be had! I'm literally into April 2012 with my Groupons."

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The avalanche of deal-a-day websites, including Philadelphia Media Network's Dealyo and Philly Daily Deals, has created an army of addicts who can't seem to resist the lure of a discount. With typical offers of goods and services marked down 50 percent or more and the economy taking a toll on people's leisure budgets, millions have caught the digital discount fever. Groupon users alone total 83 million worldwide. "We want Groupon to be an addiction you can feel good about," the company website reads.

Kate Adams of the Cobbs Creek section of Philadelphia runs with the addiction. Having purchased about 150 Groupons since she signed up in early 2010 - an inexpensive way to try new restaurants - Adams eats out a few times each week. "My friends make fun of me," she says. "But they benefit from it."

Consider Groupon-aholics the online cousins of Sam's Club or BJ's devotees - people who go weak in the knees for a reduced-price 18-pack of Grey Poupon. They may not need the products, but how can they pass up such a deal?

"It's a progressive disease," says Chung, who recently imposed an embargo on buying haircuts and massages.

Yet with that kind of enthusiasm often comes a backlog of deals. It's not uncommon for Chung to encounter scheduling conflicts - say, double-booking a massage and a reflexology appointment for the same afternoon - and it can be challenging to use her discounts before they expire, which often happens months after the purchase date. In fact, between 10 and 20 percent of all discounts purchased from Groupon go unused, the company says.

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