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Slides from a talk given by Court Guinness on the subject of Voucher Code and Daily Deal websites

Published in: Business, Economy & Finance
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  1. 1. Voucher Sites A guide for small investors and small businesses alike Court Capital Partners The Investment Network
  2. 2. Overview • Offer discount vouchers for sale online • Vouchers heavily “ time bombed” • Buyers of vouchers more likely to be female rather than male • Predominant buyer is female, middle class aged between 23 and 49 Court Capital Partners • • • • • • Groupon Wowcher Living Social Vouchercodes Bespokeoffers Dailydeal 24 The Investment Network
  3. 3. Why do these businesses scare me? • Their customers, the voucher givers have to give away huge chunks of profit! • Small print with regards to redemption rules for voucher givers • Hard sell with no regard for customers business Court Capital Partners • Aggressive payment withholding tactics • Voucher buyers often treated with disdain • Google “Groupon problems for English businesses” The Investment Network
  4. 4. For Investors • How can a business model like this be a solid long term proposition? • Groupon always targeted by analysts as a takeover target • Share price volatile Court Capital Partners • How long before supply runs out? • Target markets volatile • Smaller businesses getting more knowledgeable • Not suitable for bespoke service businesses The Investment Network
  5. 5. For The Small Business - 1 • Hard Sell • Often pressured into giving larger discounts • Ignore for services • Only suitable for products and certain services (Hair and beauty predominant) • 5 small UK businesses nearly bankrupt Court Capital Partners • Its your livelihood – keep it! • Make sure you can afford the deal and the commissions • Read the small print • Tread carefully • Do not be pressured by the sales teams The Investment Network
  6. 6. For The Small Business - 2 • Do you really need to offer these deals to grow your business? • Can your business realistically support it? • Why not Do It Yourself? Court Capital Partners The Investment Network
  7. 7. Summary • • • • Hard selling Limited markets Faults in business models and attitudes Alternative and potentially cheaper models available to small businesses • Limited shelf life left for the market • Costs Court Capital Partners The Investment Network
  8. 8. Any Questions? Court Capital Partners This slide is Copyright Court Guinness, The Investment Network and Court Capital Partners The Investment Network