Regional November 10, 2010 12:04 PM

Buffalo News Reads TechCrunch, Clones Groupon

Buffalo News Reads TechCrunch, Clones Groupon
The Buffalo News, like every other major newspaper around the country, is looking for ways to save itself.  Subscriptions are declining. The classified business has never been the same since Craigslist.  And while revenue has fallen off a cliff, the News still enjoys the luxuries of paying union wages to their surprisingly large staff. 

So what's next for the News?  Well, unlike their previous decision to tell the internet to go away, today the News launched a daily deal site.  You're likely familiar with daily deal sites as a new one launches every 45 seconds or so.  Groupon was the original in the field and, thanks to their startling success, everyone who reads Techcrunch has launched a Groupon cloneSweetfind.com is the News' daily deal site (though their article references both sweetfind.com and sweet-find.com) and today the site is offering a discount on a swedish massage at Excuria Salon.  So far, they've sold 70 massage deals. 

The News opted not to build the technology themselves for this new site and instead are using DealCurrent which allows other sites to private label their daily deal technology. 

Predictably, the rise of these daily deal sites has resulted in some horror stories.  There are a number of small business owners who weren't entirely sure what they signed up for who endured more costs than benefits even when selling large amounts of daily deal certificates.    While some speculate that this phenomenon will be the undoing of the daily deal trend, the category keeps growing and growing.  And The Buffalo News is going to try to take advantage of that growth. 

So who wants a cheap massage?  And no, we're not talking about the type of massages that are advertised in the back of Artvoice. 

P.S. To our friends at the Buffalo News, it's "Buffalo" not "Buffallo." Typos happen to all of us. 








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Maybe you can have one of the editors at the Buffalo News fix your article for you. As you say, typos happen to everyone.

Score: 8 ( 16 votes ) Vote up Vote down Report this comment

Here a great example from a story I read last week:

"Financially stable restaurants are in a position to market themselves with coupon offers because they know the coupon customer may visit again, whether that be next month or in three month’s time. The Groupon deal, for example, offers a customer a $50 coupon/gift certificate for $25. In these cases, the restaurant only receives 50% of that $25, minus the administrative costs tagged on (such as credit card processing fees). This leaves restaurants with circa $11 of gross income per $50 worth of credit in their restaurant. If 3,000 coupons are sold providing customers with a retail coupon for $50 worth of spend, that equates to $150,000 of goods the restaurant must provide (albeit their menu will carry a margin) for which they will only receive $33,000). One must therefore be acutely aware of the cost of customer acquisition in this scenario."

You can read more here:
http://westernnewyork.localfoodservice.com/apps/blog/blog_article.cfm?cmmid=42958&cmmtoken=4546810547&catid=8114&ctoken=1815160399

Score: 2 ( 6 votes ) Vote up Vote down Report this comment

you know, the repeated sneering at the news is unprofessional and beneath bro. so you do the internet better than they do? so what. they do journalism better than you do. please find something better to do with your time and bandwidth.

Score: 23 ( 27 votes ) Vote up Vote down Report this comment

These are exactly the kind of tear downs that give BRO an amateur feel. Is the worst offense you can find by the news that they tried to launch a coupon site, or that they tried to clean up an across the board spammed comment system?
Try to contribute something constructive at least instead of adding another negative voice to this city, for some vendetta you seem to have.

Score: 11 ( 13 votes ) Vote up Vote down Report this comment

I just wanted to second grad94's point about the repeated sneering. It strikes me as both unseemly and unnecessary. Why not take the high road?

And for whatever it is worth, I read the fine work of both BRO and the News every day, and I sincerely hope the News continues these kinds of experiments until they find a way to support local, professional journalism for the long term. I also hope I am not the only one in this camp. Sometimes I wonder.

Score: 10 ( 14 votes ) Vote up Vote down Report this comment

The Buffalo News will be here long after BuffaloRising and a thousand more like it are gone. If BRO had writing that was half the quality of the best Buffalo News writing, it might be read by more people.

Score: 7 ( 11 votes ) Vote up Vote down Report this comment

Oh Eric, a lot of things will outlast this website - styrofoam, infectious diseases, fondness for Led Zeppelin, the list goes on and on - but that doesn't mean they're all good things. If you want your beloved Buffalo News to carry on forever, you better hope they cut expenses even more aggressively because they're simply never going to replace the revenue they've lost to massive technological disruption. Not by selling cheap massages and not by redesigning their website. Analog dollars into digital pennies and that whole thing.

replied to EricOak
Score: -8 ( 18 votes ) Vote up Vote down Report this comment

So Bluedevil, let me check for understanding: you're upset the News hasn't devolved fast enough into a digital only outlet with crap journalism, 1000's of banner ads, a reliance on free labor, and 3 or 4 paid employees? What's next should they actually admit to profiting off the hopes of a lost city like an ambulance chaser lawyer?

replied to bluedevil
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I don't love any newspaper, but if they don't survive, does that mean they shouldn't? Is Darwinism the standard for value in media, art, or anything of deep value? If so, then maybe we should fill our libraries with the detritus of our cell phones: texts, pics and icons.

Before you keep chiseling this epitaph for newspapers, you should look to your own writing. It is callow and shrill. It will not even be an echo as the Buffalo News goes to print.

replied to bluedevil
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Wait, in one breath you say they'll last longer and, therefore, they're better and in the next breath you question whether Darwinism should be the standard for media, art, etc? I guess I'm the third man in to the debate your having with yourself.

And your obsession with writing style seems odd given the conversation revolves around newspapers in general and the Buffalo News in particular. Do you really read the Buffalo News because of the mature and subdued writing? Given you throw off the vibe - and vocabulary - of an English professor (love the detritus reference), I'd think you'd read proper authors for the quality writing and read the News for, oh, I don't know, news. Rod Watson does not equal Foucault. Jerry Sullivan, bless his heart, does not rival Steinbeck. Hell, no one there is even Christopher Hitchens.

So loosen the tweed jacket and spend some time thinking about what you're really trying to say. In the meantime, I'll start chiseling the epitaph for the next profession in need of a massive overhaul - college professors.


replied to EricOak
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Yes, I think they will last. IF they don't, the point I made is: that doesn't mean they should not have survived. There's no debate; there's no contradiction.

The overall quality of writing at the News, as at the New York Times, is bad. But the writing at BRO is mostly terrible. Like most people, I prefer bad to terrible. It doesn't mean I don't enjoy BRO; I do once in a while. As for Foucault, we should all be spared from reading his prose...and Steinbeck thankfully stays in high school.

But aside from that, the newspapers have a more useful and flexible voice than the sarcasm and smart-assness of blog writing. That's why I think they will survive, but IF they don't, it will be a bad day.

Couldn't agree more about college professors. My field is Religious Studies, by the way.

replied to bluedevil
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wah.

Score: 0 ( 4 votes ) Vote up Vote down Report this comment

Nope, not at all. The trend from analog dollars to digital pennies references comments from media executives who have recognized the new realities of their businesses. See Jeff Zucker's comments and quotes: http://www.avc.com/a_vc/2008/11/trading-analog.html

Revenue is dropping at all newspapers and costs need to be cut to accommodate for that new economic reality. While the News has offered some buyouts over the past couple years, they haven't cut enough. They provide real value in a region desperate for quality journalism but tinkering around the edges of the News income statement in the form of daily deal sites isn't going to change the short, medium or long term trajectory of the organization.

No one said anything about 3 or 4 paid employees and I have no idea what your reference to ambulance chasing lawyers is supposed to mean.

Score: -6 ( 10 votes ) Vote up Vote down Report this comment

Why the demand for drastic cuts to the News staff? Each 'cut' is a lost job for Buffalo's economy, and a lost income to a local family. As long as the Buffalo News can afford to employ their 'surprisingly large staff', I hope they continue to do so.
Why rip apart their business model for being different from BRO's?

replied to bluedevil
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Somehow I expect Warren Buffet's Buffalo News will survive. He wouldn't hold on to it if it were a dying business.

How do you know so much about the News' finances anyway??

Score: 6 ( 6 votes ) Vote up Vote down Report this comment

why is buffalo rising so consistently anti-union? The inherent amateurism is frequently on display but now I'm beginning to think of this as a subsidiary of WBEN.

Score: 3 ( 9 votes ) Vote up Vote down Report this comment

Which of the following is true?

A. Buffalo Rising is a bunch of left-leaning hippies.

B. Buffalo Rising is right wing, anti-union online arm of WBEN.

C. Commenters are desperate to put every media outlet in a box with a nice label.

Answer: C

replied to 4matic
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My apologies, I took that leap to try and compare one thing to another. Every media outlet is unique unto itself, especially BR.

replied to omonahan
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