Group Deal Discussion

Consumer Association of Canada warns against buying group deals

  • Last Updated:
  • Feb 6th, 2012 10:28 pm
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Newbie
Dec 6, 2011
13 posts
zitakatalin wrote:
Jan 28th, 2012 8:53 am
Can you tell me where I can find out more info about that?

I've just lost some $ due to buy2.ca going out of business ... can't reach them, etc, so I'm assuming my $ is as good as gone, but would like to pursue it if there is a way to get it back. (I'll start a new thread about this in a bit.)

I've also contacted the Better Business Bureau but they really can't do anything.

Check this page here http://www.sse.gov.on.ca/mcs/en/Pages/W ... ights.aspx its vague in it's wording, but may give you somewhere to start.

But if buy2.ca is completely gone...well, what is it that they say about blood from a stone?
Deal Guru
User avatar
Nov 5, 2001
10786 posts
1326 upvotes
Edmonton
blainehamilton wrote:
Jan 29th, 2012 1:40 am
Same reply for me when requesting a refund to my credit card due to Ruby Dragon closing in Edmonton after new years.

The problem with this: Dealfind seems to have the most useless group deals for sale; diet pills, massages and crappy spa deals, and other crap.

Replied that I want a refund, not site credit, will see where this goes...



Dealfind is crediting my card. Only took a second email.

So the list of group deal sites to use is small now, but does still include:

Groupon
Swarmjam
Wagjag
Dealfind
[OP]
Deal Fanatic
Apr 23, 2009
5153 posts
673 upvotes
South of Ottawa
Kahoot gave me a refund on the Aubrey's deal last summer, no problems at all. I'd deal with them again if something interesting came up.
Deal Addict
Apr 14, 2004
1154 posts
141 upvotes
Montreal
starchoice wrote:
Jan 25th, 2012 9:55 am
It's hard to believe that these restaurants, etc. even stay in business if they can't even figure out the dollar impact of a coupon deal.

The group sites sell more that the authorized amount of coupons without knowledge of the owner. They then get overwhelmed by the redemptions. I almost signed up for a 60% photography course but I the realized that there was over 100 people signed up for the 1 day event!

I also once bought 50% of dining packages at a high end restaurant (for 2, for 4, for 6 etc). I went once and it was a good deal but the restaurant went out of biz before I could use the others. However, their regular menu pricing was outrageous so their biz model seemed to be entirely modelled around making you believe that your were getting a good deal relative to the overpriced menu. So I'm sure that 90% of the people in that restaurant were there with coupons. The door2door was quite aggressive and pushy.

This was from door2door sales. I not longer get these door2door people knowing at my door (usually spas,manicure or restaurants) any more. The trend must be over for that.
Deal Addict
May 31, 2009
2623 posts
158 upvotes
Here is where the business owners lose money. Because when I redeemed a coupon, the owner said she was making no money on the sale. Then she explained to me how her deal with Wagjag worked.

So she offered $20 Gift Certificates for $10. Then out of that $10, Wag jag gets 50%. So she gets $5 for a $20 sale right? Wrong... the 50% Wag Jag gets didn't include the cost of advertising in the local newspaper, etc.

So after additional expenses, she ended up with $2 from the $10 sale, and in return has to give out $20 worth of products.

Since the $20 Gift certificate is after tax. If they purchased $17 worth of stuff, they paid $2.21 in tax. So really, the owner now owes the government $2.21 out of the $2 she took in, for a net loss of $0.21 (plus the cost of the goods itself).
Deal Addict
User avatar
Oct 13, 2007
2000 posts
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Edmonton
Crinkle_cut wrote:
Feb 6th, 2012 1:39 pm
she ended up with $2 from the $10 sale, and in return has to give out $20 worth of products.

This is a funny slant.

She doesn't have to give out anything. These are business owners. They know the details going in. If it's a money losing proposition, why are they getting involved in the first place?

I don't buy it (no pun intended).
Deal Addict
May 31, 2009
2623 posts
158 upvotes
starchoice wrote:
Feb 6th, 2012 2:49 pm
This is a funny slant.

She doesn't have to give out anything. These are business owners. They know the details going in. If it's a money losing proposition, why are they getting involved in the first place?

I don't buy it (no pun intended).

I dont think the marketing cost/expenses are well communicated. Why would they discourage people to use their service. I'll just say, we sell for $10, and you get 50% of the revenues minus the cost of advertising. They ask how much is advertising? Then theyl respond, "Not much, don't worry! You'll get so many new customers with this." Then the retailer says sure!

I doubt they'll say expenses can possibly cost you your entire remaining 50%. Although it can, after paying for advertisements in the Toronto Star and local newspapers. They also advertise on websites such as 680news, thestar.com, yorkregion.com, etc... When you're dealing with sales, your job is to sell. Not feel compassionate for your victims/customers. As your commission/salary is based on sales quantity, not quality.


Every store I've gone into to redeem coupons has told me, they'll never do it again. Also, it doesn't seem to generate repeat customers. Only cheap customers who will come when there's a special. That they would have been better off advertising in the paper by themselves.

That's why now when I see group buy deals, I call the store directly and say, "I saw your group buy deal, and figure I'd give you the option of me giving you the $10 directly for the $20 worth of product if you want, so you don't have to pay them for advertising." They always say yes.
Deal Addict
Oct 29, 2010
4200 posts
592 upvotes
If there are still deal sites left that take 50% and put their own cost of marketing out of the remaining 50% of the merchant, that's a complete scam IMO.

I usually deal with Groupon on 70-30 basis (70 to me) and there are no extra cost, besides something like 1.25% for processing fees.

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