Flash sale and daily deals sites have gained a lot of popularity in the last year with Groupon, Gilt, and Fab.com bringing consumers discounted products and services.
LuxeYard, a new flash sale site focused on luxury home furnishings and decor, delivers a fresh feature to the daily deal market: it lets its customers request which items they want offered at a discount. The site launched Monday evening with $3.5 million in funding from private investors.
The company has two notable features not seen on other flash sale sites: Concierge Buying and Group Buy. Concierge Buying lets customers request items they’d like to buy at a discounted price. Any product can be submitted and voted on by the LuxeYard community and the most popular products will be offered for sale. LuxeYard works with the manufacturer to make the product available to its customers. If LuxeYard can’t offer the exact item, it will find a substitute of equal or higher quality.
LuxeYard’s Group Buy feature lowers the price of an item as more people purchase it. By broadcasting the discount on social platforms such as Facebook, customers can drive up the demand for the deal and lower the purchase price. Once the deal is over, everyone who purchased the product pays the lowest final price.
“We are using this round of funding for a number of important aspects of our startup. Because we are a new kind of flash sale site that fills two significant holes in our industry – community and personalization – we are focusing our dollars on parts of our site that are giving our members a unique experience,” said LuxeYard CEO Braden Richter in a statement to VentureBeat. “To make this happen, we are also spending on a number of other parts of our business, including software development, focus on getting member bases up, accounting and hiring new members for our team, as we expect to grow in the same vein as flash sale sites have been.”
One King’s Lane operates in the same space as LuxeYard, offering home furnishings at similar discounts. LuxeYard is relying on its Concierge Buying and Group Buy features to set itself apart from One King’s Lane and its other competition.
LuxeYard offers discounts up to 70 percent off on luxury home decor and furnishing items — think high-end lamps, rugs, dishes, and furniture. Every item is shipped directly from the manufacturer — LuxeYard doesn’t keep any inventory, which keeps its operating costs low. Like most deal sites, you must become a member to see each deal and make purchases, but membership is free.
LuxeYard was founded in 2011 and is based in Marina Del Ray, California. It currently has a team of 30 employees.
Luxury furniture image via Shutterstock