Group buying has become pretty popular. Quite a few people I know have dabbled into the group buying phenomenon. Their heart leaps when daily coupon offers come flooding into their email boxes. For only $30 you can get $70 worth of food at a trendy restaurant. Sounds like hell of a deal, right? Well, I think not so much. My self personally I’ve yet to dabble into the group buying idea. Not, because I think it’s a dumb idea, but rather haven’t seen anything worthwhile to spend my money on. If I need a massage, I will go and purchase 30 minutes or 60 minutes when I feel the need and not because some website is offering me this once in a lifetime deal to buy now.
Think about it; Are you reall saving money when you jump at that deal or are you simply indluing to your impulse to shop when the deal is too good to be true? I think its more impulse buying than anything else. One is actually not really thinking whether they have any true use for that particular purchase or will they actually have time to make full use of their purchase. Rather the buyer is just focused at the deal; $70 worth of food for the low price of $30.
Websites such as Groupon, WagJag, TeamBuy, Dealicious offer extraordinary daily deals , yet 73 percent of buyers purchase stuff that they were not actually looking for. Impulse buy? I think so. Not all deals are actually deals. I strongly believe that only true winners are the promoters (websites) and business establishments offering the deal. After all the great thinking behind group buying is to offer an irresistible deal, bring the client in, offer further extra services, convert them to a full-time customer as opposed to a one timer and repeat. Here are some reasons why I think group buying is not all that:
1. Impulse Buying
Let’s face it, you’re thrown a hell of a deal that’s hard to resist. Have you thought about whether you actually have any use for that deal? Will you have the time to actually make use of your purchased deal? These are some of the questions to consider. Roughly 15 percent of all purchased coupons go unused. Furthermore, one should ask them selves whether they actually really need to spend the money on that given coupon. Most of the time, after going through the cooling off stage (thinking it over), you will realize that you can actually forgoe that item or deal in this case.
2. Substandard Service
When it comes to service the reviews are not that great. Staff simply prefer to serve regular clientele as opposed to deal seeking coupon junkies. Staff’s profit as well as the businesses profit is much larger with regular clients versus groupons. Managers are the ones who sign up with groupon websites, while the staff are the ones that serve them. In some instances the staff is paid less when someone presents a coupon.
As mentioned, the whole idea behind groupon is highvolume. The more coupons the business gets, the higher their profits are. In some instances, there are no profits at all. Hence why staff is paid at a lower rate. And when staff is paid at a lower rate or they won’t make as much cash translates into substandard service for discount-seekers. Typically due to poor service, customers will backlash by talking about their experiences on websites such as Yelp.
Group buying coupons come with terms. They are only valid for a certain period or can not be used at certain times. If you get an amazing deal to a five star restaurant and take your date out there on a Friday night, don’t be surprised if you get embarrassed by the restaurant by them not accepting your coupon during “peak” times, which typically translates into evening and weekends. Every coupon offered comes with terms from that individual restaurant. Coupons typically include an expiry date, and the price for restaurant meals doesn’t cover taxes and tips.
4. Research is Key
Sometimes, a deal really isn’t a deal. Ask around and shop around before making that group coupon purchase. Deals are out there, they just got to be found. Particularly during holidays, some deals are not good as they sound, because they are more expensive via group buying versus buying it at regular price.