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Old 23rd August 2011, 12:28 PM   #1
dr1ven
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Default Daily Deal Sites Discussion

I'm intrigued by this industry. Feel free to post any/all questions in this thread. Hopefully, someone in the community can point us in the right direction.

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Old 23rd August 2011, 02:09 PM   #2
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Can a mod please move this to "Ecommerce" or a more appropriate area? Thanks.

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Old 23rd August 2011, 02:12 PM   #3
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With all of these daily deal sites popping up and running deals for cities all across the US, I'm sure they don't all have the sales army that Groupon is rumored to have. So my question, how do they do it? Cold Calls? I'm not referring to the deal aggregators that display a collection of deals from various deal sites.

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Old 23rd August 2011, 04:49 PM   #4
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I'm not convinced these sites are here to stay, at least not in the spotlight. If you look at a lot of the reviews from businesses that use them, they're not finding that daily deals lead to repeat customers. Since it's a deal in the the first place (cheap offer) they really need repeat business to make it worthwhile. More than half of the businesses that Groupon has worked with say they don't plan to use Groupon again. I think the problem lies with the consumer: they're people who have self-selected as those most interested in cheap stuff and good deals. They'll come for the deal, then go where the next deal is.

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Old 14th September 2011, 08:09 AM   #5
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As Candice said one of the problems with daily deal sites, is that it's failing to bring in repeat customers. Add to that the probability of small businesses not making money on the deals and sometimes even losing profit on it, it's hard to see that it will survive in the long run with the current business model it has. On the other hand if small businesses can figure out a way how to make it beneficial for them to cash in on these deals, as well as grow their customer base through this, then there is some sort of chance for this to expand.

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Old 23rd October 2011, 04:19 PM   #6
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My experience is for a rushed production time, high pressure sales to close the deal at as great a discount as possible, and poor conversion rate of coupon buyers into regular full price customers.

What it does do is give your business exposure and some traction in the social media, although this can quickly turn negative if you can't meet your customer's expectations. This can be tricky because you will get a flood of 'at cost' or 'loss making' sales and just handling the increase in through put is enough, let alone shipping out the products at acceptable quality.

Maybe try it once ad see how you go, but definitely more for introductory service based industries as opposed to product based businesses.

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Old 29th December 2011, 12:59 AM   #7
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Quote:
Originally Posted by Candice Robins View Post
I'm not convinced these sites are here to stay, at least not in the spotlight. If you look at a lot of the reviews from businesses that use them, they're not finding that daily deals lead to repeat customers. Since it's a deal in the the first place (cheap offer) they really need repeat business to make it worthwhile. More than half of the businesses that Groupon has worked with say they don't plan to use Groupon again. I think the problem lies with the consumer: they're people who have self-selected as those most interested in cheap stuff and good deals. They'll come for the deal, then go where the next deal is.
This is a pretty common sentiment, but generally one that springs from a misunderstanding. It's pretty easy to think that the vouchers that get sold are the deal. What the business is actually getting is to be on an email blast that isn't spam. Their business gets delivered into hundreds of thousands of homes, and that's the reason a business wants to do it. It's marketing, just like people have been doing for a 100 years. Now the industry has done a cruddy job of explaining that the deal doesn't matter to the business, as it was so much easier just to ride the wave of consumer excitement. And that's just now starting to calm down.

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Old 2nd January 2012, 03:35 PM   #8
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I think there must be something very valuable within the daily deal industry as major players are entering the market as quick as possible. Just recently showing up to compete are:

-Google Deals Beta

-Amazon Deals

-Ebay Deals

-Yelp Deals

etc. etc. I think once companies like this start getting involved it will be very hard for even companies like Groupon to compete. There will also be some daily deals sites that will always be around such as FatWallet. Does anyone have a favorite daily deal site they want to share? What is better: Cashback shopping or daily deal bargain hunting?

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Old 11th January 2012, 02:33 PM   #9
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I have seen people who live and die by Groupon. I have bought a daily myself from Living Socials. I think both companies are fantastic. I have also used Gilt as well as Amazon's MyHabit and I am pleased with both.

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Old 12th January 2012, 10:33 AM   #10
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Quote:
Originally Posted by Gary Barzel View Post
On the other hand if small businesses can figure out a way how to make it beneficial for them to cash in on these deals, as well as grow their customer base through this, then there is some sort of chance for this to expand.
That is what smart small businesses are starting to do. I recently bought a Groupon for a rug store that offered $250 worth of rug for $50. The rug I ended up buying cost me $140 and I have seen similar rugs retail for that much so I am sure the rug store didn't lose any money by selling me the rug and in fact, probably made money.

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