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Deal sites

November 19, 2012

Are you all that satisfied with daily deal sites?

As the Christmas lights go up, daily deals sites such as Groupon and LivingSocial, as well as a stack of local clones, are ramping up their offerings for the holiday shopping season.

GroupThis despite continuing reports of both consumers and businesses falling victim to Groupon remorse – that sinking feeling that, upon reflection, the decision to purchase or even offer a daily deal was, well, a bit unwise.

In a survey conducted for the listing service Manta, 82% of small businesses say they plan to steer clear daily deal sites this year, largely because they generate such a low rate of repeat customers.  

What's worse, naive or simply stunned vendors regularly underestimate demand, which means your coupon is either devalued somehow, subject to more restrictions than you’re willing to put up with, or simply becomes little more than a scam. 

Here's the latest example. 

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September 24, 2012

Have you heard enough from daily deal sites?

Drowning in daily deals that pour into your inbox? Well, you're not alone. 

GroupNot only have the slew of deals lost their shine for consumers, but participating businesses are losing interest as well.

Groupon and other deals programs have been criticized by many merchants who felt the one-off deals weren't necessarily a good strategy because buyers didn't necessarily become regular customers.

They often overwhelmed the businesses, spent the bare minimum and then left. And there have been problems with vendors who fail to make good on their coupons or simply disappear.

But the real issue is 'deal fatigue,' say marketers -- a malady that's expected to affect more and more consumers, killing Groupon's share price at the same time.

The company's stock fell to an all-time low recently as analysts slashed price targets and ratings after it reported that it was collecting less money from customers.

Might you be one of them?

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July 16, 2012

When it comes time to pay the bill, who gets to use the coupon?

Presh Talwalkar, the mind behind the site Mind Your Decisions likes to use game theory to back up everday decision-making.

For instance, it's Friday night and you’re out for dinner with a few friends. When it comes time to split the bill, out comes that coupon that's been burning a hole in your pocket.

Here's the question: Should the $$ offered reduce the entire group bill, or only how much you pay individually?

Does it make any difference if it's a gift card; a Groupon-like voucher that you purchased; or a discount from a previous visit?

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June 19, 2012

Automated flower service makes up for all those good intentions

No power tools this Father's Day? Well, maybe they simply forgot. Or your spouse/partner simply didn't hound them enough.

You, of course, wouldn't be so foolish -- which is the key to KeepHerHappy, an automatic flower delivery service website geared for forgetful men who are married or in committed relationships and hope to stay that way.

“We’ve completely automated the flower-purchasing habits of men and made life a lot easier for our customers,” co-owner Dan Fallak tells the Ottawa Citizen.

“Men come to our site, enter a few details about their wife or girlfriend, as well as some important dates and we automatically ship her flowers on special events such as Valentine’s Day, on her birthday and on their anniversary,” he explains.

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May 14, 2012

Groupon introduces loyalty program for repeat buyers

A new rewards program from Groupon aims to increase the likelihood that one-time only ‘daily deal’ customers finally become long-term customers.

Groupon and other deals programs have been criticized by many merchants who felt one-off deals weren't necessarily a good strategy because buyers didn't necessarily become regular customers. And there have been problems with vendors who fail to make good on their coupons.

But, for those that do come back, the new service is basically an online version of traditional punch cards that give you a free sandwich after 10 visits.

According to Fast Company, Groupon Rewards doesn’t involve the swiping of a special card like loyalty programs at supermarkets and drugstores. Instead, customers sign up for the new program simply by paying with the same credit or debit card they have on file with Groupon.

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July 21, 2011

Is a daily deal site just for men really necessary?

It was bound to happen: The daily-deal business model popularized by Groupon is inspiring a number of group-focused copycats looking to dissect an already crowded marketplace.

With so few few barriers to entry, a number of group-buy sites geared toward specific groups are sprouting up, beyond those that concentrate on certain product areas like electronics or pet food.

Healthy Deals just launched over the weekend providing savings of 50 to 80 per cent off on heath, beauty and wellness products and services, largely geared to women who seem to be driving growth on group-buying sites.

Men and women visit retail sites in practically equal amounts, but women spend 20 per cent more time on those sites. That time equates to more money spent in most retail categories, as women buy more frequently than men do.

In fact, according to recent research from Comscore, women comprise a majority of the U.S. audiences on both Groupon (62%) and LivingSocial (67%).

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Gordon PowersGordon Powers

A long-time fund company executive, Gordon Powers now heads up the Affinity Group, a financial services consulting firm. Gordon was a personal finance columnist for the Globe & Mail for many years, has taught retirement planning...

Jason BucklandJason Buckland

The modern-day MC Hammer of money, Jason can often be seen spending cash that isn’t his with the efficiency of a Wilt Chamberlain first date. After cutting his teeth as a reporter for the Toronto Sun, he joined the MSN Money team with...