DealsGoRound is unveiling a digital wallet feature today that lets daily deal users easily manage all those sky-diving lessons, sensory-deprivation-chamber sessions and Brazilian hair treatments they’ve purchased —all in one place.
The free Deal Wallet (available today for the web with mobile versions to follow) is a central storehouse for the vouchers you’ve already purchased on Groupon, LivingSocial or any of the nation’s estimated 521 daily deal sites. Every week, users receive an email update listing the status of every deal they’ve purchased and, most important, when it expires. And if time is running out to redeem that dinner cruise or you’ve lost the ambition to rock climb? With one click the deal can be listed for sale on DealsGoRound marketplace
“Our users end up buying deals from so many different places and there is no real organizational piece to their madness,” says Kris Petersen, founder and CEO of the Chicago-based secondary marketplace for daily deals. “Basically, this service is like Mint for daily deals. We’re saying ‘Give us the credentials and we more of less suck it all in to one universal organizer.’ We will notify them of what their inventory is.”
Launched in early 2010, DealsGoRound received Series-A funding from Lightbank, the investment firm created by Groupon co-founders Brad Keywell and Eric Lefkofsky. The company would not disclose its total funding, saying only that it is “under $1 million.”
DealsGoRound was born out of an unfortunate Segway incident. Peterson had purchased four tickets to tour Chicago on the electric contraptions. He was confident his wife and two friends would fall in line and agree to zip along the city with him. But his loved ones weren’t as psyched as he thought they’d be.
“I was out $180 and thought there has to be a better way,” he said, “I still want to go on that Segway.”
The secondary daily deal marketplace is a large, and largely untapped market. While consumer spending for daily deal sites is expected to exceed $1.25 billion this year, more than one in five deals go unredeemed, according to a recent study by Rice University.
Meanwhile, the secondary-marketplace model has already proved successful in the gift card market, where sites like Plastic Jungle let customers buy, sell and trade unwanted gift cards before they expire. An estimated 6-8 percent of gift cards go unredeemed each year, according to statistics from Plastic Jungle.
Of course, we all have our own special ways of managing those discounted skydiving lessons and mud facials we’ve been buying. While the most type-A personalities among us use Excel spreadsheets organized by expiration date, the more laid-back approach has typically included entering your credit card information and then promptly forgetting all about the osso buco for two you just bought until a month after the deal has ended and the Italian restaurant you bought it from has turned into a yogurt shop.
And while some DealsGoRound sellers hawk their deals because of buyers regret, Peterson says most sell because they simply run out of time. “We are very optimistic when are making these purchases,” he says. So is he worried his deal wallet will cannibalize his popular re-selling site. After all, if everyone knows when their deal is going to expire, they won’t get stuck and frantically need to sell.
The short answer. No.
“I’m really not too worried, If we get enough users, the money will follow,” Peterson says.