LivingSocial Saves D.C. Shoppers $13 Million

LivingSocial has just released some interesting stats detailing the impact that its daily deals have had on shoppers and businesses in its hometown of Washington, D.C. From saving shoppers millions of dollars to growing small businesses, LivingSocial's hometown successes bode well for the company and the daily deals industry as a whole.

LivingSocial has just released some interesting stats detailing the impact that its daily deals have had on shoppers and businesses in its hometown of Washington, D.C. From saving shoppers millions of dollars to growing small businesses, LivingSocial’s hometown successes bode well for the company and the daily deals industry as a whole.

Since launching in July 2009, LivingSocial has saved D.C. shoppers $13 million on food, spa, gift baskets, gym memberships and a slew of other local products.

Over 400 D.C. area businesses have signed on to offer one or more deals through LivingSocial, attracting hundreds of thousands of local shoppers.

LivingSocial included two stories of local merchants’ success because of their partnership:

The first tale is of Janice Fitzgerald, innkeeper and owner of By the Side of the Road Inn & Cottage in Harrisonburg, VA. She decided to offer a large package to entice consumers, including a two night stay, breakfast each morning, a wine tasting and discounts on other local businesses. Says Fitzgerald:

“In 11 hours, I sold 702 Deals – that’s 1400 room nights or two years worth of rooms and more than double the amount of rooms I sold in 2009.”

The second story of LivingSocial success is just as positive. Kushi, a two-month old sushi bar run by a husband and wife team, saw more than 4,000 deals purchased within a few hours of its LivingSocial deal going live – enough to compensate the lack of a marketing budget that the pair had at the time.

Although these are anecdotal stories of single businesses, they do speak to the impact that daily deals sites can have on local businesses. In just about a year and a half, LivingSocial has saved consumers in the D.C. area more than $13 million, and has helped put over 400 businesses on the radar of local shoppers. And if you look at these successes through the lens of the recent whispers that Google is buying LivingSocial competitor Groupon for anywhere from $2.5B to $6B, it becomes clear just how attractive daily deals are to consumers and businesses alike.