The battle to get consumers the best shopping deal got a little more crowded on Tuesday after Facebook launched its daily deals feature in five cities, including San Diego.
"Facebook just seemed like the route to go
beginning with its large database," said Erin Paris, who is the co-owner of The Cove, a computer and art studio in Encinitas.
The Cove was among the first local businesses to be showcased as Facebook unleashed its daily deal feature.
For shoppers, an $85 voucher for The Cove can be had for $25.
For The Cove, half the money they earn goes to Facebook. Though there are no profits, the goal for The Cove is to build a client base.
"It's worth it to us, just to get our customers in here," said Paris.
The tactic is not new. The local market for daily deals is projected to grow from 16 million in 2010 to 50 million in 2011. Facebook joins Groupon, Living Social, BuyWithMe which partners with 10News and The San Diego Union-Tribune in a highly competitive local market for daily deals.
When asked if the daily deals are ultimately good for the consumer, Mike Hodges, the general manager of SignOnSanDiego.com replied, "Absolutely."
A merger with DiscoverSD has turned SignOnSanDiego into a major player for daily deals. Hodges said more competition such as Facebook will force other businesses to become more creative.
"You're going to see more package deals, such as hotel stays with a restaurant voucher," said Hodges.
Facebook could become a big factor because of its database, but Hodges said it faces a big challenge because competitors have established relationships with local businesses.
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