WagJag
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Type of site
|
Electronic commerce |
|---|---|
| Owner | Torstar, Inc. |
| Website | wagjag.com |
| Alexa rank | 19,314 (August 2011[update]) |
| Commercial | Yes |
| Launched | December 2009 |
| Current status | Active |
WagJag is a deal-of-the-day website, or an online service that claims to offer various goods at reduced prices through "combined purchasing power." The WagJag company started operating in late 2009 with its main office located in Toronto, Canada. WagJag is owned by the Toronto-based company Torstar Inc. which is also the owner of the Toronto Star and the Metroland community newspapers. WagJag also operates Jaunt.ca which offers travel deals in WagJag fashion.
WagJag's services are limited to various locations throughout Canada. It has no international operations (as of July 2012). It offers many different products and services that range from weekend dog care to basketball tickets.
Just as any other group discount websites such as Groupon and LivingSocial, WagJag has a very similar premise. WagJag is a group discount website which is focused on providing large discounts to its customers and providing registered companies with a handful of new customers if they choose to participate.
Like any business model there is a step by step formula that must be followed to ensure the business makes money. How WagJag works is...
WagJag makes its money is through the transactions of the people buying the discounted vouchers. For instance, if WagJag offers a discounted product/service for $50, WagJag would keep a percentage and the remaining percentage would go to the company. The company does not make much profit from this transaction however WagJag has essentially created a demand for that particular product. By only offering a limited number of discounts the remaining handful of customers are now curious about the product which has now given the company great marketing value as those who were unable to obtain the initial discount are now forced to pay full price.
“Deal a day” sites are extremely popular and widespread online, from the famous Groupon to the unique multiple deals of Wagjag. Both these “deal a day” sites compete against one another as customers visiting these sites do not need to pay for their advertising until their services or products are purchased. In this case, both Groupon and Wagjag have their upfront cost virtually advertised. For WagJag, the cost of a daily campaign to a merchant is a percentage of each of their customer purchases. One to two deals are given out daily to every specific area.
The reason why Groupon is Wagjag’s top competitor is because Groupon accommodates over 140 cities worldwide and offers deals in more cities than any other ‘deal a day’ site. Hence, their company is big and well-known. Their technique of providing discount for a customer is as follows: a discount daily is presented for a niche market item (such as spa, restaurant, etc.).
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