Pupalup is a collective buying website that offers discount opportunities in a Deal of the Day format. Offering savings from 50 to 90% on a daily basis, Pupalup is building a local following of daily deal seekers.
The Deal of the Day collective buying concept was started by a company called Groupon in October of 2008. In a few years the Deal of the Day business promotion model has become the #1 grossing business type on the Internet. The D.O.D business is now an estimated 1.5 billion dollar industry in over 150 cities in the U.S. and 20 countries around the world.
Pupalup is one of the first D.O.D companies to focus on smaller cities, preferably with major universities. They feel these communities feature savvy young audiences who fully understand the social media concept that drives the collective buying experience. And since everybody loves a deal (especially college kids and parents) Pupalup makes a lot of sense!
The owners of Pupalup were seeking to get involved in the Daily Deal format of websites sprouting up nationwide. Websites such as Groupon and Living Social have already become household names in the circle of budget conscious Americans. The problem is these sites are so large they only effectively cater to large metropolitan regions. Another challenge is how to attract the numbers required making daily deals effective in smaller markets.
Pupalup offers many of the features of the larger competitors including delayed credit card processing, side deals, buy for a friend, and quantity limiting. The business is also connected with a more youthful crowd offering hip merchandise in drawings and deals to places college kids frequent. Using social media as a communications platform, Pupalup is leveraging Twitter and Facebook to ensure each deal has maximum opportunity to reach thousands. This coupled with a Stillwater, Oklahoma launch during the height of the Cowboy's winning college football season adds to their chances for success.
Although just launched, early indicators show that the interest exists and is growing. We'll update this case study as we have more results to report.