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Deal websites such as Groupon, LivingSocial, etc…Deal or no Deal for commerce?

 

 

 

 

 

Deal or no deal? That is the question for your retail, commerce business, etc.

 

 

 

 

 

 

 

 

By now you have heard of all of these deal websites: Groupon, LivingSocial, CoupTessa, Google Offers, etc. Are they right for you and your company?

Yes and no.  This depends on your expectations.  I am big fan of how deal websites give a startup business, such as a restaurant, food entrepreneur, retail store, festival organizer, etc. immediate brand awareness and put a company on the local or national map for prospective customers.

 

 

 

 

 

But at what costs for your business in the long run?  Let me share insights how deal websites work.

  • Majority of deal websites require 50% profit of the item being offered.  Beware because this occurs before any additional expenses, such as Ticketmaster costs.
  • Be prepared to offer a popular and unique deal to make a bang with potential consumers.
  • If you advertise a certain product deal, be ready to receive a high influx of calls and orders. That is a wonderful problem for a new company, but can cause complications if a business cannot supply products or services to meet high demands.
  • Negotiate the end date of your special offer with your deal websites’ sale account representative for a limited time and not a year later.  People love bargains and you will still be offering great deals a year later with little return.
  • Your special offer will bring new customers and also an opportunity to increase your current client email/mail/phone database.

After reading these must knows for deal websites and still think it’s worth the risk for your company…then take the deals plunge!

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