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Cathy Zeiler, aka ladycat, accesses SlickDeals daily through her dial-up modem. Once a week, she fills her minivan with groceries and distributes them to as many as six low-income and out-of-work families near her home in Wichita Falls, Texas. In some cases, retail hackers take an attitude toward their targets that is literally paramilitary.
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Starting as early as the Monday before Thanksgiving, a full hours in advance, Shapiro arrives at the store to set up his base camp: tent, propane stove, rented Porta Potti. Using live recon from inside the store and information gleaned from GottaDeal—which starts posting leaked Black Friday circulars from major retailers as early as August—he draws up a plan of attack. He merges his personal shopping list with those of several friends, who join him during the final hours of his vigil.
When the doors open, his team moves with the deadly swiftness of a Special Forces raid—one man to the laptops, another to GPS systems, another to the DVDs, another to the Blu-rays, and so on. He speaks Hindi, Hebrew, and Arabic, which he uses to scan online message boards frequented by al Qaeda.
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He says he has worked with former Mossad officers to train parking lot greeters and arranged for bomb-sniffing dogs to scour the hotels of visiting foreign dignitaries. But the hyper-disciplined assault is also, increasingly, the approach taken by all online deal hunters—everyone from college students to urban professionals to suburban mothers like Harrison. Until recently, coupons have almost always been designed to advance the interests of sellers, not buyers. As structured by retailers and manufacturers, coupons will offer the minimum economic inducement necessary to spur the sale.
Perhaps the most revolutionary aspect of the Groupon model is that it begins with the collective buying power of the audience, whose sheer numbers—and proven eagerness to buy—give the startup enormous leverage with retailers. As a result, Groupon and its competitors are reimagining the coupon as a tool for dragging prices down to unprecedented lows—not a few bucks off a single product but 50 percent off restaurant bills, haircuts, museum tickets, and jeans from the Gap.
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For vendors, the hope is that enough of these deal seekers will convert into regular buyers to justify giving up three-quarters of the revenue from their first visit. It encourages impulsiveness and experimentation, harnessing the ever-shifting, gamelike terrain of the online dealscape, offering users not just a collective price but a collective buying experience. After purchasing a Groupon, users can return to the site and trade stories of their adventures in retail. When I visited the offices, managers were leading a group of new employees through an elaborate alternate-reality game that involved cutting open teddy bears with knives.
Some businesses, for their part, have complained that Groupon represents consumer interests too aggressively, attracting hordes of deal-hungry customers who never appear again.
But Groupon is trying to address both of these issues, allowing merchants to set a cap on the number of Groupons for each deal and refunding money to dissatisfied customers. Larger retailers could even grow wise to the latent tracking possibilities of online coupons and comb purchase histories to further manipulate our behavior. The deal-hunting horde has the tools to ensure that no bargain stays secret for long.
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Skip to: Latest News. Share Share Tweet Comment Email. Skip Comments. Some activities can get a little pricey, but there are so many things you and your family can do that are low-cost or even free.
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