About a year ago, my friend was super excited about a daily deal where she purchased $60 of value for $30. I thought, “wow, what a great deal!”. Fast forward 6 months, and her excitement turned into frustration. I followed up with her on why, and she told me about a spa deal that she purchased, where the vendor had no room to fulfill her reservation, and then inevitably, her deal expired. I couldn’t believe this actually happened. After all, the daily deal company and the local spa took her money….so where was the responsibility to honor this business handshake?
This is just one story of “the maze and craze” of daily deals. This sparked a passion and mission in our team to solve the problems created by the daily deal space. We knew there had to be a better way. The daily deal sites have definitely proven that there is a market demand by local businesses for a marketing solution outside of pure advertisements. But, we realized that the daily deals model had many flaws for both the vendor and consumer. It wasn’t a sustainable win/win relationship….the vendor lost money on each deal redeemed and the customer had to pay for something upfront that could expire before being used. In fact, this was precisely what some of the daily deal sites were promoting and selling to the vendor…that there would be a certain % of deals sold and money collected, that would never be redeemed. A business model reliant and sold on leakage is not sustainable.
So, this was the birth of Pirq, a joint venture between GeoPage and Passport Unlimited. Over the next 2 months, we brought together a team that had over 50 years combined experience in the local vendor benefits space with our geo-technology mobile team. We met every morning for almost 2 months straight. Lots of coffee and whiteboards in our humble offices in Kirkland, WA. We sat together and outlined an end-to-end model creating a win-win for the consumer and local business. Then, we put our nose and eyes to features, code, and design. Next, we went out to the streets and literally sold door to door. What we found out was very exciting…..there was a pent up demand for a solution to the maze and craze of daily deals. We are now very excited to establish Pirq as innovator into the next wave - DEAL 2.0.