All discounted out
April 12, 2011 § Leave a comment
The business is by all accounts tremendously profitable and clearly has a great business model.
But…, as a subscriber the Edinburgh daily deals email stream, I was struck by the feeling that it was overwhelmed by health and beauty deals, and as such, somewhat less valueable to me than I had anticpated.
Being an accountant, I decided to put some numbers on this. During the three months to December, I received 73 emails from Groupon. 52 of those (71%) related to offers in the Health and Beauty sector.
What did I take from this?
– Daily deal sites need to work at broadening the types of offer in order to maintain user interest/longevity
– There is an opportunity for niche daily deal sites to emerge (SecretEscapes.com)
Discount vouchers are increasingly used to generate sales (I can’t remember the last time I ate at Pizza Express full price!), but the businesses need to protect the perception of value, and constantly offering discounts definitely diminishes that.