On April 2nd, Toronto-based group buying startup GaggleUp Inc. and Post Media (Financial Post) will launch a strategic partnership called GaggleBiz. The new service will offer business to business daily deals, targeted to small to medium-sized Canadian businesses.
I asked Mark Skapinker, founder of GaggleBiz a few questions to find out how his company will stand out in a sea of group buying websites, and why it will be a hot destination for Canadian SMEs and startups.
How will GaggleBiz differentiate itself from other daily deal sites out there?
The group buying space is finally growing up. It is no longer what the Groupon clones do: “throwing together a deal and buying some consumers”. Merchants are looking for the long‐term value in group buying, customers are looking for new and different deals. GaggleBiz will sit between the small business and the merchant trying to cost-effectively reach small businesses. By using the power of group buying and pulling together many small businesses, we facilitate a much lower cost interaction – this leads to much lower prices for small businesses.
Why go after the small business market?
Small businesses usually pay a premium for everything: be it products like coffee supplies or paperclips, services like IT services, insurance, cell phones or backup. The main reason is that they are making much smaller purchases than larger corporations and it is expensive for sales forces to reach them and service them. GaggleBiz is focused on delivering low-cost products and services to small
What do you anticipate to be your biggest challenges in growing an audience/user base?
From the start, GaggleUp has offered a differentiated service. However, the crowded nature of the group‐buying market means that we need to constantly get beyond the noise of the Groupon clones. As we partner with more large corporations and our offers become further differentiated, it becomes easier.
GaggleBiz be offering great deals from top national and regional business brands to small-medium size businesses across the country, ranging from 50% to 90% off. From deals on office supplies, to maintenance and operations services, to technology and software solutions – there will be something of value for any SME or startup in Canada. Visit http://gagglebiz.com/ to enter to win fabulous prizes and get exclusive deals.