Newest social networking involves bulk purchases and saving money

By DMITRY RASHNITSOV

While the newest social networking tools have made this generation the least connected to each other in the “real world” it has helped people find others with similar interests and tastes. A group of websites dedicated to buying items together is pushing restaurants, stores and other businesses to offer deep discounts in return for the guarantee that a certain amount of people will purchase the product. This is good for the business because they can make up the money they lose in the discount through the sheer amount of the product they sell, plus they are getting their cash up front, and can use it to restock reserves or invest more money into developing the business.

The largest of the group websites is called Groupon.com. They put together, “One ridiculously huge coupon each day, on the best things to eat, see, do and buy in Miami.” At least 100 people must agree to purchase the coupon before the deal is on.

Recent deals include: $45 for Two Three- Hour Beginners’ Jewelry-Making Classes at Jewelry Creations Workshop 8214 Northeast 7th Ave. Miami; $15 for $35 Worth of Barbecue and Saucy Drinks at Q American Barbeque; and $20 for a One-Year Membership to the Miami Art Museum.

The amount of people who participate varies on each given day. Only 129 people took advantage of the Art Museum deal while more than 1,300 people opted to buy the “$49 for six Laser Hair-Removal Treatments at Electrolysis and Hair Laser Removal by Michelle” coupon that has a value of more than $1,800.

The goals of these websites is to drive consumers to a particular business by offering so-called deals while helping promote the businesses and products to people who normally would not get a chance to experience it.

Recently Groupon received more than $135 million in funding from Digital Sky Technologies of Russia which also holds a stake in Facebook.

Other websites with similar offers include BuyWithMe.com and LivingSocial.com.