Posts Tagged ‘Living Social’

Why Daily Deal Sites are Plummeting

Tuesday, March 5th, 2013

grouponInternet crazes come and go, end of story. Do you recall logging into Facebook every day to check your farm? Dare I mention the once booming MySpace or Xanga?

It seems like every newest fad hits viral, only to come spiraling down after users move on to the next best. It seems that daily deals companies such as Groupon and LivingSocial have now fallen victim to this dreaded cycle.

Groupon, the deal-of-the-day website that features discounted gift certificates usable at local and national companies, has failed to reach revenue expectations more than once.

The most recent falter was on Wednesday, February 27th. Groupon missed earning estimates for the last quarter and its outlook for the next quarter was also lower than analysts expected, sending the stock down as much as 27% in after-hours trading.

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A Poke at Groupon’s Discount on Health Services

Wednesday, June 22nd, 2011

A recent article in MSN commented on Groupon offering more coupons for healthcare services and the possible downsides.

Just looking through my personal inbox I have received the following offers from LivingSocial and Groupon in the last month alone (and these are just a few):

  • Eye exam and $200 worth of glasses- A $335 value for $99.
  • Chiropractic Consult and Exam- A $70 value for $17
  • 87% off spider vein and laser hair removal
  • 56% off Botox
  • 72% off acupuncture session

I don’t know about you, but I wouldn’t be too hasty to get an acupuncture session at 72% off. Why? Think about doing a job for minimum wage and then imagine ¾ of your pay is instantly gone, but you still have to do the same job…

And there are about 100 people waiting in line for your services which means you are booked back-to-back for the next few days and/or you have to cut a few corners to service them all. Do you really want that grumpy, overworked person poking you with needles?

I’m not saying you will receive shoddy service, but how would you feel if you were in that situation?

However, I do appreciate that consumers are able to get discounts from somewhere for certain things they need during these hard economic times like eye exams and dental care.

Regardless, I try to keep in mind a piece of advice my mother always told me: You get what you pay for.

Do you use deal-of-the-day sites like Groupon or Living Social? If you have, what has your experience been like? If not, then why not?

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