ec Newsletter #70
Hello [##First Name##],
Greetings from a sunny Gisborne and welcome to a new EC Newsletter.
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All about Daily Deal / Voucher Web Sites
There seems to be a new deal or voucher web site opening every week at the moment â€“ should your business jump on the bandwagon and join the rushâ€¦?
Having a commodity product or service where people can have surety of what it is they are buying when they make a buying decision seems to be the prerequisite for selling your product or service via a deals web site.
So the flipside â€“ if you have a non-commodity product or service then deals sites probably arenâ€™t for you.
In this sense a commodity product is something that can be purchased straight off the shelf â€“ or straight out of your booking calendar.
It isnâ€™t likely to be something that is custom made or one of a kind product and most seem to be under a couple of hundred dollars.
These deals could be excess capacity â€“ such as a slow middle of the day appointment for your salon or â€śwhile you waitâ€ť tyre shop or could be a special deal on something that you have a huge stock of and need to move in a short space of time.
The single thing that makes a Deal site seem such a great thing to consumers is the time ticking down until the deal is no longer available and some deal sites also offer a limited number of products available.
Once the deals have gone they have gone â€“ get in quickâ€¦!
Deal sites arenâ€™t a sliver bullet answer though â€“ you need to ensure that you are left with enough profit on the item or with enough capacity (space in your calendar) to service all those new customers.
There are instances where smaller companies have taken the windfall of the deal upfront â€“ but then find their cash flows are very low as they deliver the services to voucher holders at the expense of paying and / or existing customers.
There are many deal sites to let you pick and choose from and ultimately go with â€“ Iâ€™d suggest finding one that has already listed products or services similar to yours â€“ although perhaps not in the same geographical market that you are in.
This allows you to get an idea of how many deals could be made â€“ and lets you plan accordingly.
Prices vary with each provider as they have different â€śreachesâ€ť (literally the number of people on their database), their geographical targets and weather they also do real world advertising to support their direct email marketing.
There are providers that follow a theme â€“ just wine for example â€“ and those that offer a single deal â€“ or many deals through the day.
I have seen articles suggesting that the deal site may take up to 50% of the final deal price and wonâ€™t deal with a product or service unless it is already up to 50% off â€“ so that doesnâ€™t leave much profit on the table for you the supplier of the product or service.
Offering your new product or service via a deal web site is a great idea if you are new to a geographical market and want to take market share from the incumbents â€“ but be aware of the true cost of this in your calculations.
Your own social media should take up the call when you do have a special offer on one of the deal web sites. This can help drive your existing customers to the special priced deal so they feel rewarded too and not forgotten about.
Another caution though â€“ be careful you donâ€™t set an unrealistic pricing expectation â€“ it is always hard to increase prices back to a level after a great discount is given and you risk losing your existing customers if they suddenly see other options with other providers on the deal web site.
One thing is apparent is that more and more consumers are signing up for the deal web sites just as more and more providers are entering the market and the trend doesnâ€™t look to be slowing down.
From a consumers point of view â€“ there are a couple of web sites that aggregate the deals so that you only need to go to one web site to view all the deals â€“ for the best one check out: -
If you do want to â€śtest driveâ€ť if a deal would work for you then you may want to do your own just to your Facebook friends to road test the response.
Bonus Web Site:
www.loveonedaysales.co.nz is a web site dedicated to tracking the deal / voucher web sites currently available in New Zealand.
They list 69 known to them at the moment and have a further 39 which are â€śComing Soonâ€ť or have already gone out of businessâ€¦
Yup NZâ€™ers love a great dealâ€¦
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Cheers and thanks again