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, 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
Thanks Budget Savvy Diva for sharing this informative post!