2. Being heavily involved in the daily
deal industry, I always enjoy
discussing the pros and cons of
featuring a deal on a deal site with
businesses who have either just ran
a deal through one, or businesses
thinking about running a deal. From
each of my discussions, it has become
obvious that one party involved in
the daily deal seems to typically
always lose. Over the holidays I was
hanging out with a good friend who
3. The deal sold extremely well, the
customers were very happy, our boss
did really well and upsold a lot, but
we had to work our tails off to keep
up and it really stressed myself and
all the workers out. We definitely
lost on that deal and are not very
excited for the next time our owner
runs a deal, which is coming soon,”
Trevor told me.
4. In this particular deal, the workers
got the bad part of the deal. In
other situations, the business
running the deal fails to figure out
their numbers correctly and ends up
losing out by selling their product
or service at to much of a
discount. Recent studies by Rice
University suggest that a
significant number of businesses had
lost money when using Groupon (32%!)
and more than 40% said they would
5. There are even horror stories of
where merchants and
businesses have shut their
doors after running a daily deal put
them in a very sticky financial
situation. Many times, the daily deal
website itself doesn’t end up working
out and ends up shutting down.
And of course, many times the
customer ordering the daily deal
loses out and experiences buyer
remorse, or even worse for them –
6. Any way that you look at it, it seems
one party involved gets the short
end of the stick. If a merchant
properly crunches some numbers and
works closely with the daily deal
site, it is possible for all parties
involved to win. Many and most times
however, one party loses out.
I would love to hear how you have
been affected by daily deals; for
better or for worse.
