"All About Daily Deal/ Group-buying sites"

[dealflip.com.au]

Hello fellow soloists,

Over the last few weeks a lot of chatter has been growing in regards to daily deal/group buying sites in general.

From new entries into the space (like us) to people interested in finding great deals through these type of sites and even other business owners looking into possibly running deals on these sites - this space has definitely been heating up in the forums.

There have been some suggestions to start a thread dedicated to this topic in particular. Even though i'm not a seasoned forum member I willing to put my hand up and give this thread a push start.

So everyone currently in this space, interested in this space or just wondering what this space is really all about feel free to jump in and leave a comment.

I thought I would start the dialogue with asking people why WOULDN'T you buy a deal through these sites? I guess we all know the benefits in this discount deal space but what would hold you back from actually buying a deal through sites like these?

So fellow members let's hope this thread flys up, up and away

Cheers,

Paul

[CondorCreative]

Well one of the bad things I have seen reported about them on shows like Today Tonight/Current Affair is businesses not honoring their deals/coupons and doing stuff like "putting you at the back of the queue" so to speak; then there is things like all the fine print; you can't use it on this occasion, you can't do this, you can't do that etc..

[Neill]

These are good points and the main ones I think. To this list of mental hurdles I would add: It's cheap so it must be no good; if the business is offering such a big discount, then they will be cutting corners somewhere; I don't want to enter my credit card details online; I’ve never bought anything online before; I read so many horror stories about group buying that I am not going to take the risk; group buying is a fad that will pass; I haven’t seen a deal type I’m really interested in (most deals now are very similar); if I can’t get a booking with the business, I will not be able to get my money back from the daily deals site.

It doesn’t matter if some of these concerns are unfounded – they will still need to be addressed.

Regards, Neill

[JamesMillar]

The vast majority of consumers are very happy with what deal sites provide (hence the rapid growth) so whilst trying the reduce these concerns is important - as a deal site I wouldn't get too hung up on them. There will always be people that are skeptics or can't be pleased. The media will do what they do which is to overstate the magnitude of complaints. A few months ago they couldn't stop running stories on how positive group buying was.

Variants of group buying are here to stay - no doubt about it. They may look a little different in a year or two but the direct email / special deal premise will be the same.

The bigger challenge will be sourcing and maintaining a good deal pipeline. We implemented a CRM sales solution for one of these sites and oversaw the sales process. It was a challenge three months ago and since then it's become harder. Are deal brokers the solution? Maybe. Maybe not. My advice for startups in this space would be to consider the trading stock route. Walk into a restaurant and hand over $5000 upfront / on the spot for discounted seats and you will out pitch the big boys 10 to 1. It requires a stronger balance sheet but it simplifies the sales process.

[Anon]

I am seeing a huge increase in extremely bad and illegal practices (ACCC misleading or deceptive conduct) by some of these 'businesses'. A lot of these businesses are using fake business websites which have just been made up for the purpose of advertising on the deal site. The websites list a product at an extremely overvalued RRP to try to miss-lead people into thinking that they are getting a good deal, but are actually getting conned.

[dealflip.com.au]

Hi everyone,

I definitely agree that there should be transparency throughout this industry to benefit both the consumer and the merchants who are actually running a deal through these sites.

As the industry evolves this will be more evident. Unfortunately there has been more negative exposure recently given to this space in general.

From the customers not receiving what they paid for, whether it is due to the fact that the merchants have not properly addressed the sudden influx of customers etc. To the merchants themselves no being totally 100% aware of all the fine print.

There have been numerous reports through both online and offline mediums explaining how some merchants were not notified of when the deal would actually launch and not receiving their share of the revenue - only until a minimum number of customers go to use their coupons/vouchers.

Some of the "biggies" will only give you 20% of the revenue and hold a big chunk of it till a % of the customers actually use their vouchers. I guess you can see how this can negatively impact on a businesses cash flow.

Fortunately there has been a lot of discussion on also providing a solid code of conduct in this industry to protect the SMEs who run a deal plus the customers who buy them. Which is a big plus for everyone in this industry.

You can view some of the articles here:

http://www.insideretailing.com.au/IR...duct-1127.aspx

http://www.smartcompany.com.au/retai...ent-terms.html

I guess everyone should understand this is a fast-growing industry in Australia and of course it will have it's teething problems as the space in general matures.

Cheers,

Paul

[fiona kate]

the idea of collaboration is growing world wide. I do purchase from these sorts or sites if the offer is something I am in the market for. Many times i have been a customer and have been happy with the process. twice the deal has been too difficult to validate - I unsubcribed immediately never to be back... easier to find a site that values their customer. if buying freight dates should be clear. waiting 2 months it too long

we have sold our product on a daily deal and would do it again.

[Bappymills]

I am not saying I wouldn't buy from a group deals website (after all I love bargains ), but the deals I have been interested in and considered buying, I have found once I click through and read the small print the deal isn't what was originally advertised.

[JaneB]

There is such a lot of bad publicity now. This article was followed by over 100 comments - most of them negative.

[onsiteTECHS]

I've bought a couple of deals from Spreets, and both times have had an exceptional experience at a really affordable price. I do know of a few people who have had bad experiences though.

My recommendation to businesses considering selling on these sites, from a consumers perspective, is treat customers redeeming their vouchers exactly the same as any other customer! There's nothing worse than being treated like a second-class customer because you're redeeming a voucher - things such as being seated at the worst table in the house, having a reduced menu to choose from (unless that was clearly stated in the deal), rude and arrogant service, clearly smaller servings or worse presentation than diners around you (in a restaurant), etc are very demeaning and off-putting and will result in bad word of mouth. These sorts of behaviours aren't new to the online deal websites either - it's been a common complaint of coupon and voucher deals in traditional advertising too.

If you can't afford to provide exceptional service to your voucher customers, then don't offer them in the first place.