Many people have purchased a daily deal. There are several big daily deal websites out there right now, and the numbers of these sites continue to keep on growing and expanding. Groupon, Living Social and all the other countless sites are counting on you to buy their numerous deals. You buy this “deal” at usually a decent sized discount and then get to use it at a company.
However, there are negatives to daily deals, for both the consumer and the company which is participating in the daily deal.
Are these daily deals even good for the companies which are participating? From what I’ve read, they usually are not good for the companies. The companies who participate usually receive a very small amount of money back from what is sold. Most daily deal sites give the company 50% of the deals that are sold.
So, if a company sells $20 worth of products for only $10, then the company is actually only receiving $5 for these same $20 worth of products.
How does a company stay in business with a small profit like that!? It is said that many of these deals to not bring in long lasting customers as well, so once these daily deal customers come in, they usually won’t back.
Why is this? This is because these customers are most likely coupon shoppers and will wait for the next coupon or good deal to come out.
So now that we know that daily deals are not always great for the companies which are participating, now we can talk about the people who are buying the daily deals. Are you addicted to buying daily deals?
There are many people out there who buy these deals just to buy them, and they have no idea if or when they will ever use them. A deal is not a deal if it’s not put to good use.
Here are some tips so that you aren’t wasting your money:
1. Make sure the daily deal is something that you will actually use.
This seems like it would be an easy tip, but many people do not follow through with this. How many daily deals do you currently have sitting in your account that are waiting to be used? I bet you have some in there!
If you don’t usually drive out to a town that is 100 miles away, then buying a daily deal there is probably not worth it. Going somewhere just because you have the deal would counteract the actual deal part.
2. Figure out what the WHOLE cost will be.
One way that some companies try to recoup their cost of participating in these daily deals is by having some sort of requirement. Maybe that eye exam seems cheap, but the glasses don’t include the actual lenses.
Also, if you buy a hair certificate, how much will the total tip be afterwards? You should be tipping on the full amount of course. A $150 haircut that could’ve been done somewhere else for only $40 is a big difference when it comes to tipping on the full amount.
3.Verify that the value that you are saving is actually money saved.
A daily deal that is often seen are one’s for photography sessions. Recently, a photographer came under hysteria for heavily inflating their prices so that it would seem to be more of a good deal.
The session was one hour long, at the studio, and with a beginning photographer at a standard photography company. Groupon stated the value of this was approximately $1,500! The price didn’t even include any prints or clothing changes.
It should be said that even though you can possibly be saving money by not buying daily deals, there are of course instances in which you can be saving money. Daily deal sites can be used so that you can try out new things for cheap. You can then see if you actually want to spend your money on the same product or at the same company in the future.
Do you use any daily deal websites?
Photo Credit (camknows)