discounted deals - Throughout the last few years the 'daily deals' phenomenon has gone from to strength to strength and then for now there doesn't seem to be an end in sight for this booming business.
Most people are right now knowledgeable about the concept of daily deals but also for the ones that aren't, here is a snapshot;
The daily deals / deal for the day website everyday promotes an arrangement offering large discounts on things such as restaurant meals, spa's, beauty treatments through to sky diving and holidays. The deal typically gets activated whenever a variety of customers join the daily deal, this 'deal tipping' concept is named group buying and means that by ensuring a higher amount of customers the business enterprise can offer the massive discounts.
free deals - From a business perspective the idea also is useful. Businesses need customers and so are often necessary to spend massive quantities of money out of their marketing budget on attracting those customers. A 'daily deal' can be a great solution for cost effective marketing as the business won't must spend anything. Instead they use the daily deals company to make a deal / offer which can be emailed in the market to the daily deals database of customers. These customers then sign up the daily deal finding a substantial discount around the regular services with the business.
The business gets free promotion to all of the daily deal websites subscriber base which can regarding a number of the deals sites be around 100,000 people or maybe more (national exposure deals get provided for much more). Some of these then buy and become customers with the business then hopefully benefit from the experience and return being a a high price paying customer and tell their friends in regards to the great experience.
As an example 'Sensational Sushi Restaurant' in Surry Hills desires to generate new customers with their restaurant, they work with the deals site and decide on the following deal, 60% discount on a 2 course meal along with a wine bottle. This deal is shipped to any or all from the deal websites client base in Sydney's Inner West, 150 people buy, then over the next Half a year (with respect to the timeframe the deal is created for) they redeem their deal at the restaurant.
From the customers perspective, they obtain a great
This group buying business design was made by Groupon in the usa in November 2008, they now have daily deals websites all over the world and are estimated to be worth between 15-25 Billion USD.
Despite these staggering numbers there are many people that believe that the deal-of-the-day style model that Groupon created starts to show cracks. The growing number of deals sites, competition within the industry and sheer amount of cash being made has resulted in some sites over selling the deals, over whelming the businesses with much more customers compared to they can comfortably deal with.
daily deals - This over selling of deals has resulted in absolutely free themes the inability book their activity including the meal in the restaurant for weeks or months, when they finally do manage to make a reservation they may be then treated as second class citizens since they are presenting the deals voucher. The entire experience could be off putting and leads to the shoppers never returning but also telling their friends and relatives which further damages the company.