When Not to Buy from a Daily Deal Site
Thanks to discount products and services sites like GroupOn and LivingSocial, daily deals can easily be delivered to your inbox every morning. But are the countless discounted spa packages and restaurant promotions really money-saving opportunities or just a new platform for promoting impulse buys that must be grabbed before they’re gone? While these innovative sites have created amazing collective buying power for consumers and have even changed the way we explore our cities, the deals don’t always translate to actual savings for the individual. After all, spending money is still spending money, no matter how far the purchase is marked down. With prudence in mind, here are six times it’s better to pass up tempting daily discounts:
1. When you weren’t planning on purchasing it before you saw the deal
It’s hard to say “no” to anything that is marked down 90 percent, but buying something on sale is still spending money. Before succumbing to the tempting offer, the urgency-producing countdown, and the big and bold “Buy!” button, remember you could save 100 percent if you resisted the deal altogether. On the other hand, if you’ve been dying to try the featured restaurant and can do so at a deep discount, then that translates to true savings. The key is to ask yourself whether you were going to spend the money either way.
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2. When you’re a regular or repeat customer
Some deals, especially ones for gyms, yoga studios, or workout classes, specify that the deal only applies to new customers. Beware of this stipulation before buying a deal to your favorite exercise class that you’ll end up not being able to use.
3. When you could get a better deal negotiating with the business yourself
For better or worse, these sites act as middlemen between customers and businesses, virtually destroying customer-business interaction. Before swooping on that deal for two weeks of unlimited classes at a local music school, make sure the company doesn’t already offer a new-student discount or trial period that could surpass the savings advertised on your screen. And don’t underestimate your own ability to score special treatment or discounts by simply asking! Despite the multitude of sites that act as intermediaries, many companies rely on personal customer service to acquire new customers and retain business.
4. When the fine print makes the deal restrictive and less enjoyable
Most of these sites are thorough in spelling out the restrictions related to each discount, but it still requires reading them. To make sure it’s conceivable that you’ll be able to cash in, pay attention to whether or not you can use the deal during peak hours. If you have to take time off work in order to go on that discounted adventure, is that really saving you money? Other restrictions to consider are whether or not alcohol is included or if the deal has a maximum number of guests that can partake. In addition, if you’re considering a restaurant, make sure to factor in gratuity when considering whether or not the deal is within your budget.
5. When you’d rather be loyal to tried and true services
There’s no question that Groupon’s business model is a game-changer. After all the company is valued at an incomparable $25 billion and has spawned countless imitators. But lately the model is under backlash that it’s actually not good for small businesses because while it gets thousands of new customers in the door, the deal doesn’t necessarily breed customer loyalty or even repeat visits. If businesses can’t rely on customer loyalty, they’ll inevitably cater to first-time customers in order to try to compete. And the trickle-down effect could mean less and less attention to customer service. There’s something to be said for supporting local businesses and using your consumer power to breed business practices that encourage repeat business—think loyalty programs and attention to customer satisfaction. If you discover a cool new salon or restaurant through these sites, make sure you frequent it again instead of simply chasing the next deal.
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6. When the consumer reviews leave much to be desired
It’s always a good idea to read reviews before buying a deal, especially when it comes to salon services. No amount of savings is worth a disappointing experience or a disastrous haircut that you’ll need to spend money at a trusted source in order to repair.
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Reprinted with permission of Hearst Communications, Inc.
photo credit: istockphoto.com
