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Top Complaints About Daily Deal Sites

Avoid these missteps to improve your experience and benefit local businesses

January 10, 2012 RSS Feed Print

LivingSocial's twist on the process includes the option to share a link to your deal. If three more people bite, your deal is free.

For its part, Groupon has positive testimonials, with some businesses saying they consolidated a half year of expected customer acquisition time into a few days. Theaters have welcomed the opportunity to fill an otherwise half-empty house on some nights, which tends to improve the experience for the actors and the audience. Groupon says it will make right or return any purchase that doesn't meet consumer expectations. Response time has received mixed reviews in social media and retail blogs.

Deal sites also raise a bigger issue: The advent of "thrill of the hunt" marketing that seems to separate consumers more easily from their disposable income (or maybe not-so-disposable income in some cases).

[See Why I'm Shunning Groupon.]

As for this writer and consumer, I'm still a Groupon subscriber. If anything, the frequent emails drop local business names right in my lap, providing gift ideas or reminding me that I want to find a new dentist. But mostly I long to return to a simpler formula, in which I'm willing to pay full price for the best meal I've had in months. And I'll return because the food was just that memorable.

Whether you use daily deal sites—well, daily—or more sporadically, there are some common missteps or misinformation that can be avoided in order to improve your experience and benefit the local business that will keep money in your community.

Here's a snapshot of common Google gripes and LivingSocial letdowns, plus ways to improve your experience:

Note how many deals can be used at one time. Some businesses limit using more than one coupon during a single visit even if you buy up to the maximum number allowed at purchase time. So if you're hoping to cover a larger family by using three coupons at one meal, for instance, you may find yourself limited to one-per-visit and paying full price for the remainder of the bill.

Read the fine print regarding what the deal covers. Sometimes you may have to make additional full-price purchases to get the complete service. For instance, as one user notes, a spray-tan salon sold the booth session via Groupon, but the moisturizer and color tube that are apparently necessary for a longer-lasting complexion change were sold separately.

Do some research. LivingSocial claims its deals are handpicked by its on-the-ground experts. Consumers will be better served to read up on their purchase independently. It's not a deal if it's a disappointing experience.

[See 8 Painless Ways to Save Money.]

Maintain spending plans for eating out and recreation. It's bad on the budget to buy an Internet deal just for the sake of getting a bargain.

Reconcile credit card charges with the deal specifics. Some comments have noted that charges appear right away on credit cards but deal confirmation can be delayed.

The deal broker is responsible for repaying the consumer if the deal provider (the shop or restaurant) goes out of business before the expiration of the coupon. Some consumers have reported a delay in getting their money back.

Groupon and LivingSocial stress the importance of appropriate gratuities, including calculating the tip as a percentage of the full-priced service. At the risk of stating the obvious, heed their advice.

Be constructive but fair about the quality of service. Some small business owners say they're getting horrible online reviews from fleeting "deal" customers.

Tags:
shopping,
internet,
personal finance,
money

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Gobza will be the best yet. Free advertising for business 24/7/365 plus commissions for connectors: http://www.gobza.com/3950

MM of TX 12:18PM June 24, 2012

Interesting to see the merchants point of view and how they have to fight with the low prices. But I guess the trend for daily deals is still growing especially since sites like i.e. yipit.com or deadle.com make it easy and quick to find a deal among the hundreds of dealsites.

For me the theory that once you bought a coupon you come back there without coupons afterwards isn't valid. Once I paid only half the price I won't accept the full price later...

Bill of CA 8:16AM February 26, 2012

I own a small book store which up until recently was doing well on the Internet. Last July I opened a bookstore where I sell a variety of books, make personalized books for children, photo DVDs and sell wooden toys. I joined the BBB and am active in the local chamber of commerce.

Opening the store was a very big mistake!

This was my dream and it is dying because of the economy, Amazon and other big corporations with millions of dollars that are killing local businesses with low prices that are sometimes below their cost (and they get stuff much cheaper than your local merchant can) just to kill competition and take over markets.

I have a contract in front of me from LivingSocial and a very, very, very eager young woman trying to get me to sign it. The more successful it is the more money I lose and I don't have much left.

I appreciate all the information on this site and other sites about people's experiences with LivingSocial. And, thank you for the leads on less expensive sites!

I have tried just about everything and have two choices left. Cage dancers at the intersection of two main streets where 40,000 cars a day pass by, but don't stop. Or bribes. Cage dangers would cause accidents and probably get me arrested, so I'm trying 25% off everything in my store. (A bribe.)

The few people that have visited my store like it and are telling their friends. But, not enough have found my store yet.

Please think what will happen to your favorite local store (if you still have one) if the big guys keep forcing prices into the toilet. They will survive but your local businesses won't. And, if you have children where will they find a summer job? And, when they are ready to be on their own will they just move out of your town because they can't support their families without a job. Or is everyone going to eventually work for Walmart or one of its surviving competitors? Are local businesses going to become catalog stores for Amazon? (Remember when many small towns had a Sears catalog store?)

My son works at a big retailer in Omaha. His store advertises that they will beat any advertisied price. He said people are coming in demanding lower and lower prices and his store is meeting the prices. His store and the other big corporate chain stores will survive; but anyone else without a lot of money will not.

Please give your local merchants a fighting chance to survive until our government gets out of our way, people get back to work and our economy improves.

Ron Nixon of NE 9:04PM February 21, 2012

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