Perishable inventory comes in many forms. It could be a concert seat. It could be baked goods at the cafe up the street. When the goods go unsold, it’s a lost opportunity for the business. Five and Fifty is aiming to eliminate this unsold inventory by providing text message deals that can be purchased in an automated fashion and available for a limited time. The company name specifically references the requirement to offer a deal of at least 50% off for 5 hours. Unlike a Groupon deal, where the goal should be to acquire new customers for a long term relationship, Five and Fifty is meant to be extremely time sensitive and eliminate what would otherwise be a wasted opportunity for the business.

I see this type of deal site as potentially more appealing to a business than a Groupon, because the risk is much lower. There’s a flat fee per deal, not a revenue split for every sale. If a business is having a slow night or simply didn’t accurately anticipate sales volume, they can attempt to cover their losses by discounting inventory still in stock. For baked goods or other perishable food this makes great sense. If you have a hair salon that had a bunch of cancelations, you might be able to fill a few more chairs. And if you have a concert that didn’t get the attendance you expected, you can bump the sales for day of show by offering an immediate deal to anyone signed up.

The challenge here for Five and Fifty is getting enough people to sign up for deals to see a payoff for the businesses. The coupon discount space is getting more crowded by the day. Without a critical mass of users, businesses won’t see the benefit and become a repeat Five and Fifty customer.

For the customer side of the equation, Five and Fifty is thinking in a direction I’d like to see more coupon sites go. Five and Fifty is offering customization of the types of deals you see. So if I never want a deal for a nail salon, I’m not going to see one. I can opt into restaurant deals and watch for the businesses who are blowing out their pizza slices or whatever they happen to be serving. If Five and Fifty can make that level of customization work, they should be able to attract the users the businesses want.