MUST READ – 10 Things You Have To Know About Daily Deal sites

June 13, 2012

It might just be me… but doesn’t it seem like there is a new daily deal site ( like Groupon, Living Social, etc.) popping up every day. So we here at Budget Savvy Diva did some research and came up with

Ten things you should know about Daily Deal sites

Thanks! Mr.Savvy for writing this article

 

1.    You may not be getting the discount you think you are getting.  Some businesses change their prices outright.  Others simply charge everyone more and bank on selling the “deals”.  Try researching a little bit and make sure you read fine print before you buy.

2.    You might not be able to cash in.  Most people wait until the discount is about to expire and then supplies, or services may be unavailable.  It is a good idea to call a restaurant, instructor, guide, etc. and schedule as soon as you can.

3.    Since deals cannot be classified as either gift card or coupon, rules regarding expiration and refunds are vague.  This has lead to three lawsuits so far, all pending.  Some merchants are getting more specific in regards to this, but you may end up with less than you bargained for.

4.    If the deal site goes under you could be stuck with the bill.  Some merchants may still honor your discount, but it’s entirely up to them.  There has been an explosion of daily deal sites, over 600 now and they don’t all cut mustered in such stiff competition.  Make sure you’ve researched not only vendors but the deal site you buy through.

5.    40% of vouchers don’t get redeemed.  It’s a high possibility you won’t even cash in on your own coupon.  Some reasons include, forgetfulness, busy schedule, poor gift choice… For the site, however, it is a selling tool to entice venders.  If you wind up with a voucher you can’t use, there are sites such as couprecoup.com and dealsgoround.com that help you unload it, but better not to spend the money to begin with.

6.    There may be even more fine print in the future.  Though roughly 66% of groupon merchants enjoyed success, that remaining third made headlines.  Groupon leaves it open for merchants to specify the details of the deal, which could result in more upselling than saving.

7.    The deals often are extended on the premise that businesses will attract new customers, but data is showing that they often attract stingy penny pinchers who are unlikely to spend more than the voucher amount, become a repeat customer, or tip.  This means that the value for merchants is low and more trouble for customer service reps than it is actually worth, so they may pull the plug on daily deal site offers.

8.    You are often times getting a half off discount on something you would never do.  Even if you cash in on it you are still way overspending.  Some people rack up huge expenses on a series of expensive opportunities, simply because the percentage off is good without accounting for the dollar amount.

9.    The deals aren’t special or exclusive… for long.  Limited time offers often show up on other sites as soon as two weeks after one is expired.  Merchants are also likely to have the same offer on their own site, facebook, or twitter.

10.    Though they try to do effective merchant checks, the need to post deals sometimes outweighs their research or discretion.  The bigger the deal site gets it’s harder to find useful merchants and they become a target for companies who are building negative reputations.

Do you use Daily Deal Sites? If so which one’s and why

{ 8 comments… read them below or add one }

Nicole P May 17, 2011 at 12:59 am

I use groupon because it worked for a friend and has proven to work for me. It is also the biggest and most popular deal site so it is recognized by sales rep when I redeem the coupon.

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Holly May 17, 2011 at 1:04 am

I use groupon.
I have come to notice that sometimes when things seem like a good deal or discount – the prices have changed which ends up not being a good deal.

However, if you are careful and don’t just splurge on something that sounds ‘good’, you may end up getting a great deal. I bought a 40$ groupon for a hair salon outside of Atlanta, Ga for 100$ of service. If you don’t recognize how expensive it is to get your hair cut/colored/highlighted etc.. it is very expensive. Buying the groupon was a gamble, the salon could have been terrible..the job could have been terrible. My trip using the groupon was amazing. My bill would have been 98$ – I left a generous tip.

Another groupon my husband and I have recently purchased was for a local ice cream shop that is very similar to cold stone creamery. 5 adult ice creams + 3 mix in items for 12$.

My husband and I try to do local things that are fun and things that we would generally do anyway – if we get a deal on it, awesome!

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laura May 17, 2011 at 1:31 am

Great post! I personally usr groupon, eversave and mamapedia most. I won’t post a deal on my site from a brand new deal site because like you said, they can be very unreliable sometimes. EversaveI know has fantastic customer service and goes above and beyond to make an error right. I’ve seen Them refund a deal before becauseThe company was being sketchy

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Merilee May 17, 2011 at 1:31 am

I use Groupon, Living Social and Half Off Depot pretty regularly, although I probably have about 10 sites I’ve used. I haven’t had a problem w/any of them. There was a time when one restaurant would not honor the certificate (found out through a friend) and all I had to do was send the deal site an email for a refund. A different restaurant had closed for renovations and I didn’t find out until the day before it was going to expire and another site refunded me as well.

The article is correct though. Be sure it’s a deal for the purchase and be sure it’s a deal you will use. I discovered that I really don’t like being bothered going outside of my usual area to use a deal coupon so I think twice about making the purchase.

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laura May 17, 2011 at 1:33 am

Sorry for the typos, my phone likes to randomly auto correct the wrong words on me

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Devon June 13, 2012 at 11:48 pm

I have a few but my favorite are groupon and getmyperks. I was nervous about getmyperks but myself and numerous family and friends have used it since I found it and we have all had success. Trying new things I wouldn’t normally afford has led to lots of new experiences. Not all have been as great as I thought they would be but that’s life. Love these daily deal site and appreciate Mr’s info.

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Heather October 30, 2012 at 4:39 pm

I’ve used groupon quite a few times and have had great luck with all of them. I love that I can get a Jamba Juice for $2 instead of the normal $5 I usually pay. I have also gotten rewards from them where I have gotten free groupons like an oil change from jiffy lube and a free basket of bagels. Definitely worth it for me.

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Jenna November 30, 2012 at 5:09 am

I like to look on Hautelook for my makeup… they frequently have the brands and specific items that I usually buy (like my favorite oil free Stila foundation), but I’ve found them SO much cheaper. Usually that foundation is in the $30 range and it absolutely makes me crazy to have to replace it… I found it on hautelook.com for $15.

It’s definitely hit or miss, though. I go on there looking specifically for things like that: makeup that I’ve already seen/tried in stores and wished I bought, or makeup that I already use. I’ve saved quite a bit doing it this way!

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