The moms behind discount site Mamaloot.com
When they worked together at Orbitz in Chicago, Bo Johnson and Lindsay Cohen became smitten with Groupon.
They'd get daily e-mails from the company on things like trendy restaurants and fancy spas in Chicago. But they rarely acted on the offers, because both had newborn babies and Johnson lived in Bloomingdale.
So, in August, the two business-savvy new moms launched Mamaloot.com, a Groupon-like business that tailors its deals to Chicago-area parents.
Their deals have included half off admission to Kids Town in Wheaton, $10 for five admissions to Nibbles Play Cafe in Wheeling, $50 for $100 worth of merchandise at Galt Baby & Toys in Northbrook and $25 for $50 worth of merchandise at Psychobaby in Chicago.
“When you become a mom, everything changes. You don't spend your money the same way. You don't spend your time the same way. I go to indoor play areas now, not expensive restaurants,” said Cohen, 31, who grew up in Wheeling and Arlington Heights and now lives in Chicago with her husband and 17-month-old son.
After just four months, Mamaloot's success has far exceeded their expectations. In 2011, Cohen and Johnson plan to hire more staff and expand their company nationally. They'll also add a feature that allows Chicago-area members to regionalize their deals, so they can get offers for specific geographic areas, such as city-only, Northwest suburbs or North Shore.
With new deal-a-day websites sprouting up everywhere especially those targeting the sought-after mom market the competition is fierce. But Cohen says Mamaloot is leading the charge.
“Our goal is to be the dominant daily deal site for moms in the U.S.,” she said.
Mamaloot.com users register for free and immediately start receiving e-mails offering deals on mom- or kid-friendly products and services. Cohen and Johnson said they are picky about the businesses they feature, and lean toward local and socially responsible companies.
Between now and Dec. 24, they're donating a portion of their proceeds to the Greater Chicago Food Depository.
While Groupon has been criticized for causing some businesses to lose money people use their coupon for the deal but don't buy anything else and never return Johnson said Mamaloot's members are different. They are looking for an incentive to try out a business or service they heard about from other parents, said Johnson, 30, who has a 14-month-old son.
“Moms are looking to develop a relationship with a business,” she said. “They're not going to drive all the way across the city to save a few dollars on a massage.”
The idea for Mamaloot was born, in part, because Cohen desperately wanted a pricey UPPAbaby stroller.
Her husband found the price tag ridiculous, and said the only way he'd ever allow her to buy it was if she could find it at a discount.
The exclusive stroller was never discounted, so the enterprising Cohen came up with an idea to find other moms who were interested in buying the stroller at a discount.
Then she approached the manager of a children's boutique in Chicago and told them she had seven women lined up ready to buy the UPPAbaby stroller. The boutique sold each woman the stroller at 20 percent off, and everyone was happy.
That lesson stuck in Cohen's mind as she and Johnson considered starting Mamaloot. Each has business experience that complements the other: Johnson in sales and accounting, Cohen in marketing and promotion. But since they're both moms in the Chicago area, they have a good sense for what types of products and services will interest local parents.
“We hear such positive feedback from moms, and that's nice,” Cohen said. “We tell people, if you go a few days without seeing something you like, don't worry. Wait for the next one. There's always another one tomorrow.”