Product Idea

DS 741.01

Austin Cote

Spencer Leman

09/21/2016

App/Business Idea:

Our idea is an application that allows consumers to discover local deals in the form of one-of-a-kind coupons/discounts to local eateries, retail stores, grocery stores, events and more.  The basic model consists of a free application (downloadable to apple and android users) that is comprised of three simple interfaces:  

(1) A main feed that shows all local deals in a selected radius, organized by newest or most popular.  

(2) This feed will allow users can refine their search results to different merchants, i.e. restaurant, retail, entertainment etc.

(3) Your account/profile (linked with Facebook) feed – this is where your past purchases, payment information, as well as friends using the app will be displayed for the user’s convenience.

The business model is very simple – We will host the deals on our platform at no cost to the company.  However, we will take a percentage (these percentage thresholds are displayed below) from the consumer’s purchase.  To better explain here is a simple example:

        DHOP advertises a deal -> $2.00 slice + get one free

        The consumer will see this deal marked up to $2.50 + get one free and make the purchase

        DHOP makes $2.00 on the sale, and we make $0.50

*The consumer does not see that $0.50 is added, but the business will be aware that the percentage is added once they make a submission to the app*

The incentive for merchants to use our application to run their deals can be explained through the lack of risk.  The deals that are present on the application are not extreme discounts or anything that the merchants wouldn’t run on their own, our app just offers a platform for them to advertise, effectively boosting marketing efforts and driving more traffic to their business in the process.  Additionally, consumers are very likely to leave the venue with more than just the coupon they purchased through the app.  To site the DHOP example, that consumer more than likely also bought a drink as well, and multiply that by however many deals the company wants to run and they’ve effectively increased their business.