Business Dressing Made Easy with the Reign Effect

LivingSocial Teams up with SeatGeek

Groupon Set to Release Third Quarter Financial Results Today

Daily Deals Sites Called Deflationary Weapons of Mass Destruction

bomb

It’s been mentioned in the past that daily deals sites such as Groupon and LivingSocial might not be good for some businesses. The truth is some merchants have run into serious financial issues when they’ve run a daily deals campaign and it hasn’t done much for their customer relations either.

This seems to be especially true for restaurants and other food industry services. In a recent article on BostonHerold.com daily deals sites were likened to online “vultures” that along with new state legislation, took a bite out of local restaurant businesses this past year. While these sites may be a boon to consumers by offering 50 percent or more at restaurants and other dining establishments, some merchants view daily deal providers as a blight on the industry.

Jeff Gates of Aquitaine Group believes that the biggest issue that restaurants have had to deal with this past year is the explosion of Groupon-type “vulture buying groups.” None of Aquitaine Group’s six restaurants want anything to do with the daily deals sites, though Gates says he is hounded on an almost daily basis with their “flop sweat” marketing pitches.

“They are deflationary weapons of mass destruction and are very, very dangerous for the restaurant industry to get involved in,” “I don’t think restaurants realize how challenging the bottom line is without giving half off to your customers. (They) lose track of what they’re giving away.”

Deep discounts obviously work on the consumer end of the deal but for many merchants, especially those in the food service industries, working with social buying sites is something to be avoided. According to Gates the restaurant business simply can’t afford to underwrite it all.


Warning: mysql_fetch_array() expects parameter 1 to be resource, boolean given in /home/dailydealmedia/public_html/wp-content/themes/20121129-ddm1/functions.php on line 852

Warning: mysql_fetch_array() expects parameter 1 to be resource, boolean given in /home/dailydealmedia/public_html/wp-content/themes/20121129-ddm1/functions.php on line 852


Warning: mysql_fetch_array() expects parameter 1 to be resource, boolean given in /home/dailydealmedia/public_html/wp-content/themes/20121129-ddm1/functions.php on line 859
  • Deal Garden

    Not true. They accelerate consumption, drive commerce, and generate much-needed tax revenue.

  • Terry Mowery

    At the usasavingsclub.com, we work off a 5% cost for the merchant and 50% goes to the fundraiser.

  • daily deals rock

    The bottom line is that some businesses may complain about daily deals, but the fact is 99.99% of them will turn down a radio, tv, newspaper, direct mail opportunity merely because they have to pay upfront.
    Most of them don't care or are too lazy to run the numbers to see which model is the way to go. Traditional Media or Daily Deals? You could literally flip over a napkin and show a client definitively that they will indeed break-even or lose money on a specific daily deal for their business, yet we'll hope to see lots of future customers form this amazing daily deal. The Traditional Media (lets say direct mail) will cost you $2,214, but will throw off $13,487 in gross profit. But, Here is how it plays out for 99% of businesses owners even though they are clear that traditional media is the way to go>>
    “YES, LET ME ASK YOU, WILL I HAVE TO PAY UPFRONT FOR THIS DAILY DEAL, AND I WILL PROBABLY LOSE MONEY?” No upfront costs. You only pay on what gets sold. “CONSIDERING I DONT HAVE TO PAY NOW, EVEN THOUGH I MAY LOSE MONEY WITH THE DD MODEL AND YIELD A TIDY PROFIT WITH TRADITIONAL MEDIA, CONSIDERING I DONT HAVE TO PAY NOW, I WILL GO WITH THE DAILY DEAL CONCEPT.”
    ———————————————————————-
    I love the Daily Deal model and its here to stay, but its hilarious that clients choose DD because no upfront cost over traditional media.

Newsletter
DDM Reports
The 2014 Edition of the DDM Daily Deal Publisher Directory is the most comprehensive contact list for daily deal sites, flash retailers, aggregators and individuals operating in the daily deal industry. Each record includes the following: - Company Name - Website - Contact Name - Contact Title - Email - Phone - Address (not all records contain a full mailing address)
The 2013 Media List is a comprehensive database of all major media, bloggers and product/app review websites. If you're looking for PR distribution, this is a great list to begin with. Each record includes: - Contact Name - Publication Name - Website URL - Address - Email - Description
2.7M Consumer Subscribers. This data has been aggregated from a number of websites, which include daily deal sites that have gone out of business. Data includes: - Full Name - Address - Phone Number - Email - Signup Website - IP Address - Date of Signup Data will be delivered via a dropbox link in CSV format.