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  • Mar 17th, 2011 11:39 am
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Jr. Member
User avatar
Sep 9, 2009
114 posts
20 upvotes

Are group deals a fad?

Over the past months, I've been frequently buying coupons from sites like wagjag, teambuy, and occasionally groupon. I wonder though, is this just a fad, or will group deals will remain a shopping trend forever? There are dozens of sites out there...how do companies like these even differentiate (or innovate) themselves?

Recently, I've been finding that groupon deals are somewhat stale. I mostly buy food coupons, and wagjag seems to have some decent choices. Although I find their site very annoying.

I am curious to hear your thoughts. Btw, this is not for homework or anything like that lol.
21 replies
Newbie
Feb 9, 2011
61 posts
7 upvotes
H.K.
Yes. To me, as ppl want to lower down every living cost, they will refer to the better or the more economic one... Plus, groupon gets it, so i guess it won't stale that soon? I surpose their tictac is to beat the price LOL
Banned
Feb 27, 2011
73 posts
united kingdom
I like to buy things on groupon. because i could save a lot of money in this way, and some of my friends also like buy things on groupon. :)
Deal Expert
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Nov 19, 2005
15580 posts
507 upvotes
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The only group deal I bought/got was the Krispy Kreme thing and I am redeeming it today a day before expiry!
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Deal Addict
Sep 22, 2007
4599 posts
116 upvotes
I think they will probably fade away shortly. If you search online you'll find a lot of sites with criticism over the deals. Companies sign on agreeing to sell a product and receive 25% or so of normal value expecting to receive increased customer base. A lot of them are finding however that they lose more on the deals than expected and don't receive much in return.
Deal Addict
Feb 5, 2009
2082 posts
183 upvotes
spf1971 wrote:
Mar 14th, 2011 6:53 am
A lot of them are finding however that they lose more on the deals than expected and don't receive much in return.

+1. OP, you can somewhat answer your question yourself.

How many places you bought a coupon from are places you'd never considered buying from before?
Of those, how many will you continue to buy from, even without a coupon?

If lots, then that's a good sign that the group buy sites have some life in them. If not many, then the companies offering the coupons are going to wisen up that this is a very bad deal for them, and will stop offering the coupons, which will kill off the group buy websites.

Of course a sample size of 1 isn't statistically significant, but from what I've been hearing most people don't plan to re-buy from a company without a future deal being offered, so I don't think it looks good for the group buy sites.
Deal Fanatic
User avatar
May 12, 2004
8214 posts
2352 upvotes
Ottawa
They will slowly fade away IMO.

Reason? Back when they first started you bought a regular gift card/gift certificate for a restaurant, spa or whatever else. Now there was a Deal of the day last week in my city for 55% off a restaurant with the following conditions (from top of my head):
-Must be used for dinner only Mon-Wed
-1 per table of 4
...with a bunch more conditions.

So basically your table of 4 is getting a 12.5% discount at best. What's the point when you can get BOGO deals from the Entertainment book and such?

Basically the clones killed it. They can no longer pick and choose the best offers, and many of these offers have way too many conditions.
Deal Fanatic
User avatar
Oct 27, 2008
6955 posts
60 upvotes
Ottawa
So far I've only bought into 4 of these deals. 3/4 were for places I have never been before, some I had never heard of.

I signed up for cheap dance lessons, but quite frankly, the normal going rate was too much for me to justify spending, especially if it wasn't something I liked, and as it turns out, it isn't something I like enough to even buy for another deal.

I got a deal for a portuguese restaurant that I had never been to before, but my girlfriend mentioned she wanted to try it at some point, so I figured I'd snag the deal. The food ended up being pretty good and the cost is about average I guess, so we will go back at some point.

Got a deal for a brunch at the NAC Cafe which was very good, but I couldn't justify ever paying the full amount for it. On the other hand, I discovered they do dinner during the week at a more reasonable, regular price, and I will go check that out some time for sure.

And finally I got a deal for Grace O'Malley's, which I have been to before anyway, and they are pretty decent, so I figured "why not".

So 3/4 places have gained me as a potential repeat customer in one form or another, while one hasn't.

I generally use the coupons to try new places or things I haven't had the chance to before, and if I like it there is a good chance I will return if the prices are reasonable.
Deal Fanatic
User avatar
Oct 22, 2007
7973 posts
1178 upvotes
London
Every new advertising gimmick has a bell curve to it. Group deals won't disappear completely, but some other gimmick will take it's place.

Probably in the next 6-9 months you'll see many of the group buy players disappear, implode, consolidate and get bought out by bigger ad media companies.
Deal Guru
User avatar
Nov 15, 2004
12549 posts
880 upvotes
Toronto
It's mainly service businesses that are featured in the deals, and it's a good way to get people to try their services. I've signed up for Zipcar through groupon, and I've picked up rock climbing through livingsocial, so I'm sticking with two of the ones I've bought. The restaurant ones don't really get a lot of retention from me though, as they're usually places that are out of my normal price range.
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Deal Guru
Aug 2, 2001
12737 posts
3637 upvotes
My thoughts are that we will slowly see the large number of "group sites" go down as they become more and more competitive. I envision them giving more back to the businesses to attract new ones, which will cut down on the profit margin and some of the smaller ones will go away.
[OP]
Jr. Member
User avatar
Sep 9, 2009
114 posts
20 upvotes
GSRee wrote:
Mar 14th, 2011 7:35 am
+1. OP, you can somewhat answer your question yourself.

How many places you bought a coupon from are places you'd never considered buying from before?
Of those, how many will you continue to buy from, even without a coupon?
Of all the deals, I'd visit max 2-3 places. I read a post on RFD a while ago..the poster basically said that these deals are very sour for business owners. They lose a lot of money, especially when their routine customers start buying these coupons.

Agreed though, there are way too many sites to pick from.
Deal Addict
User avatar
Sep 23, 2009
1283 posts
68 upvotes
Brampton
Reminds me of that looney tunes episode for the insurance salesman who said you can only get paid out 1,000,000 million if you get a black eye if a stampede of elephants comes through your living room between 3:45 and 4:pm on the 4th of July. These group deals are getting to that level.
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Deal Addict
Mar 18, 2005
4420 posts
144 upvotes
Mississauga
Cas77 wrote:
Mar 14th, 2011 9:41 am
They will slowly fade away IMO.

Reason? Back when they first started you bought a regular gift card/gift certificate for a restaurant, spa or whatever else. Now there was a Deal of the day last week in my city for 55% off a restaurant with the following conditions (from top of my head):
-Must be used for dinner only Mon-Wed
-1 per table of 4
...with a bunch more conditions.

So basically your table of 4 is getting a 12.5% discount at best. What's the point when you can get BOGO deals from the Entertainment book and such?

Basically the clones killed it. They can no longer pick and choose the best offers, and many of these offers have way too many conditions.

for the deals in which they limit it one per table (and the value is only enough to cover 2 people), my family and i (4 of us) just purchase two vouchers and sit at two seperate tables. Yeah, sometimes they know you are part of the same group, but they can't do anything.
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