When herd mentality makes economic sense!!!

As Birds of a feather we flock together,

And knock of a few dollars for one another.  : )

For a 20 year old" koolio",

Dinner with friends  at a five star ,a blackberry that matches his guitar …

Partying at Enigma with the girls who want perfume and spa…

May now be an affordable indulgence,with group buying sites springing up each day.

Group buying sites operate upon a very simple business model. The websites feature promotions with a predetermined discount and a minimum number of buyers. The limited time period creates a sense of urgency, prompting impulse purchases. All interested buyers must provide their credit card information, but are only charged if the deal goes live. Little money is locked up in working capital because the group buying website either bills the entire amount of the purchase upfront and retains a commission before passing the rest of the payment onto the merchant, or charges a token amount and directs the user to pay the rest at the merchant's site. If the deal does not materialize, the group buying site isn't stuck with any back inventory because the discounted service or item is sourced at the participating business. Buyers receive vouchers for their purchases via e-mail or text message and they have anywhere from one to three months to redeem the offer.

Group buying sites in India and the USA you'll might want to compare,

USA

http://www.couponsherpa.com/ask-coupon-sherpa/you-compare-top-9-group-buying-sites/

India

http://www.pluggd.in/group-bargain-crowd-team-buying-sites-india-297/

Nearly a decade ago Marcata a group buying site funded by Microsoft burst onto the scene with these bold words."If you're not part of the we-commerce revolution, you're history!"The  " revolution" began appropriately enough on July 4, 1999 and died an untimely death.

A few back dated news articles on Marcata should make an interesting read!!

http://news.cnet.com/Mercatas-planned-IPO-highlights-group-buying-trend/2100-1017_3-237972.html

http://www.internetnews.com/bus-news/article.php/551521/Group-Buying-Forges-Ahead-Despite-Mercata-Shut-Down.htm

http://www.techflash.com/seattle/2010/02/mercatas_technology_reborn_in_martin_tobias_kashless.html

More about other things in my next blog!!  Till then Happy herding!!!  : )