People + Coupons = Groupon!

High on everyone's list these days is saving money, so the fact that one of my favorite email lists exists is probably not surprising, but still fantastic: the Groupon.

What in the world, you might ask, is a Groupon? Shortest explanation: a group coupon!

It was started in Chicago in November 2008, and has since spread to Boston, New York, Washington, Atlanta, Los Angeles and San Francisco, with groups launching soon in Philadelphia, Phoenix, San Diego, Seattle, Dallas, Denver and Houston. Basically, Groupon collects email addresses of people in a metro area where they'd like to get a group going, then once they hit whatever their magic number is, they start soliciting merchants.

The merchants who agree to offer Groupons are guaranteed a certain number of customers who will purchase their offer - a number I believe they set at however many customers they would need to make the offer profitable for them - and one offer is sent out to each city's list every morning. They range from deep discounts at local bars and restaurants to half off (or more!) a scuba lesson, yoga class or salon treatment.

Everyone who wants to buy the day's Groupon does so online, although no one's card is charged until the merchant's "magic number" of participants is reached - a countdown to which is always visible on the site. Once enough Groupons have been bought, it's a done deal and the following morning, you can print your Groupon and head off for some cost-effective fun. (Each Groupon has an expiration date set by the merchant, but most are at least a month after the purchase date, so you don't have to rush to use it.)

Since the first Washington Groupon on May 26th, I've bought two of them - a $30 5-class card for Mind-BodyFitness (worth $75), the Pilates studio I told you about in last week's Food for Thought, and a $25 offer for $50 worth of supplies and time at Color Me Mine, one of those "pick something ceramic and get creative with paint" places.

I've been tempted by a few more - half off a scuba lesson, half off kayak and canoe rentals, a discounted all-day paintball session - but my practical, frugal side kicks in most of the time and says "Really? When (and where?!) are you going to scuba in the near future? You've never been paint-balling and it's out in the middle of nowhere; would you actually go, Miss I-Live-In-Metro-Mecca-DC-So-I-Refuse-to-Buy-a-Car?" Still, it's great to be able to (occasionally!) splurge on things I really want to do, knowing that I'm getting a fantastic deal.

If you live near one of Groupon's current or future cities, I highly recommend signing up and taking advantage of their amazing discounts. It's a great way to get out, try new things and make the most of what your area has to offer!