Local Business is Part of Hot Web Trend

Group buying is arguably the hottest trend on the web this year.

Odds are that you have received several forwarded deal e-mails, and noticed an increasing number of Facebook posts from your friends sharing deals for everything from manicures and museum passes to horseback riding lessons.

To understand just how hot the trend is, consider that the biggest presence in the sphere, Groupon, Inc., based in Chicago, is said to be valued in the neighborhood of more than $1 billion.

The phenomenon also has a growing presence in Danville.

Passbox.com is locally owned and operated by partners Peter Economos and Ken Arneson.

Economos came from the dot-com bubble burst. He and Arneson saw a need among local businesses to use the web and social media to reach the local community. Taking advantage of their combined online experience, they started East Bay Social to meet that need.

The original concept was to provide a platform for local businesses to connect with customers, coupled with fun raffle programs for passes that customers could collect. That concept evolved into Passbox, which launched in January.

Economos and Arneson soon recognized the power in offering time-sensitive, incentivized deals to a targeted customer base.

Timing also played a role. Economos says the tremendous reach of social media sharing platforms such as Facebook, coupled with a poor economy, makes deals more likely to "go viral." This provides exponentially increased exposure for a business compared with a traditional advertising-based marketing campaign.

Passbox adds value to the deals by ensuring that 5 percent of each sale goes to a local school of the buyer's choice.

With three young children of his own, and nieces and nephews in town, Economos said he recognizes the significant needs of the schools and says that they have "grander plans" to expand this element. 

The concept appeals to local businesses, Economos says. Passbox does not charge an upfront fee to be a part of the service. When offering a deal, Passbox handles the transaction from start to finish, cutting the business a check, minus the local school contribution and a commission. 

The hyperlocal focus of Passbox sets it apart from larger competitors.

For example, Groupon's deals have focused largely on major market cities, and the company has received increased criticism from businesses and consumers regarding disconnects and risks involved in local deals being managed nationally.

With Economos' and Arneson's  knowledge of the area, Passbox can better respond to the needs and interests of businesses and local consumers —and that ensures a good deal for all.