Initially, I liked the idea of receiving daily emails offering me deals in my home city of Leeds but last week I unsubscribed to every daily deal website simply because my inbox was full of beauty deals – nail painting, teeth whitening, I have had enough.

Lots of the daily deals aren’t in Leeds
I started to notice that a high percentage of the deals were not even in Leeds, yes, in neighbouring cities, but they were of no interest to me. Speaking with family and friends it seems I am not the only person who has had enough of the daily deals in my already spammed out email inbox.
Are the deals really a deal
Headlines of 75% off XYZ product looks eye catching but are all of the deals, real – a local Health shop in Leeds called Millies wrote an interesting blog post about a product that they found on a daily deals website.
Needs to be a better mix of deals
I want to see a good mixture of deals for restaurants, bars, cinema, theatre, basically, deals for things I enjoy doing in Leeds. A month or so ago I planned to take my nephew to the cinema – couldn’t find anything on the daily deal sites I subscribed to, but went on to the Odeon website, and found a 40% discount.
Find local deals when needed
Last week I went out with some friends and while in the pub I searched for discount vouchers for restaurants in the area we were in, and received a 30% discount on our meal. So, this is where I think the daily deal business model is flawed – as consumers we search for deals as and when we want them, and they are enough sites out there without having to sign up to a mailing list.
Grim future for daily deal websites
I think the next 12 months for daily deal sites will be grim – I think we will see more closing down, and I reckon Groupon are going to regret not selling to Google when they had the opportunity.
Your opinions on daily deals
Are daily deal sites going to be extinct in 12 months time – what do you think about the business model? If you are a consumer or business using this service what were your experiences?
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Jack Norell | 26 October, 2011 at 9:49 pm
I think you’re right, the deals coming through even in London are very geared towards beauty treatments. Even the Living Social events outfit doesn’t seem to be gaining any ground at all.
Disappointing to say the least, though I’ve snapped up a couple of good deals this year, there hasn’t been anything in the last six months of even passing interest.
Avalon | 26 October, 2011 at 10:05 pm
I was actually thinking of writing about this myself. Here in New Zealand we have a whole host of deals websites – GrabOne being the biggest I think. I actually bought a “deal” last night for in Indian Takeaway for 2 at just $15. Thats was for 2 curries, 2 rice and 2 naans. Thing is when we got the Takeaway – we found that the curry and rice were half the size of a normal takeaway. So was it really a 50% off deal?
Ive made some fair use of the Beauty deals though
On saying that – they have actually been for the city I have requested deal for. Some are out in the suburbs so I dont use them – but most are for the central city – so I cant complain on that score.
thahira | 27 October, 2011 at 7:52 am
Its true, now a days inbox is getting full of deals like you said beauty products, etc. and i too unsubscribed to every daily deal website.
Dan Johnson | 27 October, 2011 at 9:37 am
Agreed. Once the novelty has worn off people realise they want deals when ‘they’ want them, rather than when the distributor sends them out.
Very few deals I see actually have the wow factor to make me go out and buy something on the hoof.
Andy Jarosz | 27 October, 2011 at 12:23 pm
They’re shooting their own prospects down with their scattergun approach. I signed up to Groupon for London offers and lasted less than a week before the deluge of spam had me unsubscribing. If they could even filter the offers at a very basic level they would have half a chance of keeping me and many others as customers.
Like you say Darren, if you fancy going for a pizza with friends there are plenty of sites where you can print off a 2 for 1 voucher without all the email crap that Groupon and others hit you with.
John | 27 October, 2011 at 1:58 pm
I completely agree. Groupon and its ilk are a waste of time. I’m actually suprised there are many potential investors left for Groupon’s floatation.
Steven | 27 October, 2011 at 2:43 pm
The market for daily deals has actually been saturated for a while. Businesses using this model need to think of a new strategy if they want to remain in business.
Emma Louise | 27 October, 2011 at 3:25 pm
Just happened to me too. Bit by bit they start to bombard you with all sorts of stuff. It would be much better for these website we sign up with to actually ask us which bit we are interested in and what we are not.
Even better still, if they could automatically take your geo position to offer you what’s on in say a radius on 10 miles would be a much better tool for people than a huge long list of stuff you would never dream of doing or going to.
I live in Spain but my home town is Leeds and I do miss it so much. Happy blogging to all Leeds people.
Jason Baxter | 27 October, 2011 at 7:06 pm
Haha funny you should write about this Darren, this weekend I unsubscribed to Living Social and Groupon because of the EXACT same problem. I think you need to send them a link to this blog post so that they wakeup and realise what people really want.
Darren Cronian | 27 October, 2011 at 7:07 pm
Thanks for the comments everyone. Interesting discussion – it would be interesting to hear about experiences using daily deals websites from businesses and people who live this type of thing, to get a balanced view.
Michael McGregan | 28 October, 2011 at 9:24 am
I am the owner of a local restaurant in Edinburgh and what we found was that people did take up the deal, but, when people did not turn up at the restaurant, Groupon kept the money that the customer paid – we received nothing. I am not sure if this is a regular occurance, maybe someone can tell me?
Jason | 28 October, 2011 at 4:32 pm
Please PLEASE let us have rid of these websites. Horrible business model where businesses receive very little in return.
Marie | 28 October, 2011 at 10:31 pm
A few people have mentioned that the deals should be split into categories and I agree. Very few men will want to receive deals on manicures and very few women will want to receive golf deals etc.
Jack Norell | 4 November, 2011 at 10:03 am
@Avalon – I think that’s just disgraceful. Oh, and false advertising if you’re so inclined. Complain to the deals site.
Andrea Kirkby | 6 November, 2011 at 10:05 pm
These businesses, and far too many others, are stuck in broadcasting mode, in which they have to send you email all the time. Haven’t they heard of RSS?
Jam Sr | 13 November, 2011 at 6:19 am
OK, so it’s always nice to have an opportunity to invest in a market when it’s relatively new! Now that the daily-deal sites are second nature, it’s easy to be upset… Why didn’t I get in on the deal when it was young?
Well, deal site are here to stay. It’s just a matter of which one will actually deliver the local merchant to us that is willing to provide a deal to get our money!
There you have it!
Mark McIntyre | 8 December, 2011 at 12:03 am
On the business perspective i used a daily deal site in Ireland to promote my fitness services, namely a BootCamp Military Class i offer, before the offer started i had a good number of committed clients, once the offer started those clients left as they felt aggrieved at the offer… The grab one voucher holders used the vouchers then never to be seen again.
I was a sucker and went for the whole increased footfall sales patter… As pointed out earlier on this thread, people are loyal to the daily deal site not to the business and why not?
With group fitness classes, personal training, beauty treatments etc all on offer it leaves the consumer with the ability to spend as little as possible.
Unfortunately the business is left to service ‘x’ number of customers and even take on additional staff to accommodate the extra customers.
Here is something worth considering.
Whenever an offer is purchased through a daily deal site
1. The business runs at a loss (For the promise of an upsell)
2. The Business is likely to fail
3. The money that would normally circulate within the local community ceases.
4. Tax dividends dive bomb
5. This forces an increase of government taxes
6. It lengthens a recession
7. It is anti-wealth and anti job creation and dulls true entrepreneurial spirit.
David Urmann | 27 December, 2011 at 4:53 pm
I think your right about the deals not being specific or targeted and as more companies start offering the vetting of the deals will get worse (Is it really a deal?). I personally like the idea of group buying better or some ways to find deals in reverse.
Sam Millies | 4 January, 2012 at 11:43 am
They seem to have helped create a society that has come to expect everything to be discounted. I’m looking forward to a shift towards consumers focusing on quality of products/services and good customer service rather than big discounts. But I feel this will take a long time.
Karen | 4 January, 2012 at 1:14 pm
I was recently caught out with KGB deals – they promised that I would receive X amount for each massage deal bought, which was already barely covering costs. In reality I received X – 20% VAT, so my share has helped to pay their VAT bill!
They claim that they made this clear when they visited, which they didn’t.
I’ve now received another email from a different KGB rep making the same claim, that the merchant is remitted 60% of the total – no mention of VAT.
The amount received won’t cover my costs and like many have said the people using these deals are unlikely to come back unless you continue to offer deals at a loss!!
20 responses to “Future for daily deals websites looks grim”