This isn't a post bashing Groupon, LivingSocial or any of those daily deal sites. Heck, Google has it's own version of a Daily Deal site (Google Offers) and it's actually pretty solid. However, this is a post reminding all consumers to be careful when it comes to these sites. The whole point of a company running an offer on one of these sites is to drive business. It isn't to just hand product/experiences away at a low rate. Barring some truly awesome deals, most of these offers have two stipulations - one that's apparent in the fine print and one that is mental in the consumer. Always read the fine print. Seems like an obvious point, right? Tell that to all the folks that bought up Restaurant.com gift certificates only to learn that the $10 gift card they bought for $2 is only good on a purchase of $35 or more, before tax and tip. Suddenly that date night doesn't look as appealing when the restaurant in question is priced where a couple may spend $25 tops after tax and tip. These dining deals are solid for families but single individuals and couples should probably avoid them unless they plan on really embellishing. Otherwise you're spending more money just to get a deal and in the long run you're coming out behind. Impulse. Coupons drive impulse. Coupon for 40% off zip lining? That sounds fun, I'll buy that. Would you have gone without the coupon? Probably not. Some occasions these coupons really are a mix of "I was going to do that any way so let me buy it" but most are just a consumer buying because the price is right. However, this often forces the buyer to do activities they never would have done - again, costing them money in the long run. It's not a good deal if you weren't ever planning to do it any way. This is particularly true for Groupons, etc on classes. Two weeks of free yoga when you buy six. Unless you had a big urge to do yoga, that coupon will likely go to waste as you skip your yoga classes. As with any type of shopping discipline is the key. This rule shouldn't be forgotten when it comes to Daily Discounts.
Hey...interesting share and very thoughtful. Cheers for that. I do agree with you that it may seem like you are stating the obvious...but many people I know just do not read the small print. I remember going to a seminar once and the guy giving it said to always remember that you are buying the small print and not the flashy advertisement! There are many deals to be had when you are discerning and disciplined, that is for sure. Thanks for this post.
Funny story: my husband and I had one of these restaurant.com deals that was only good if we ordered $35 or more, so we figured we'd let loose a bit. The bill, which we thought would come up to about $50 or so, came up to more like $90, and it would have been $115 if we didn't have that coupon. Oops... Don't worry, we learned our lesson, haha!
Ha! That's a great story. Thanks for sharing. Nothing wrong with a little indulgence now and then! It's amazing how many friends of mine have purchased those without even knowing there's that "must spend" limit. They just assume it works the same as a gift card, I suppose. Glad you knew what was going on prior to receiving the bill.
This is very true of any coupon however. It know it is harder for people to remember when they aren't just the grocery coupons we may see in what often people consider "junk" mail every day. A lot of my friends are baffled that I will bother to clip coupons because they feel it works better to save just purchasing off brands and not bothering. I search however for that 5% of the time where it can go well for name brand items. So, it's not only important to keep in mind for restaurants, but the same for clipping coupons. Often you have to purchase a certain number to gain any benefit. This works well again for families saving, but if you live alone or just have roommates and don't share much, it doesn't add up in your favor. Unless you always purchase 3 boxes of Kellogg's cereal every shopping trip. Thanks for giving this very thoughtful reminder! It is important to know that, often times however the sites do tell you up front now how much you'd have to spend for the discount. I just use this as an opportunity to have a ladies night or a night with firends out and everyone saves a couple dollars on their meals! That's another thought to make these far more useful. So they are great for students who enjoy dining out together too. I suppose still family, just not a traditional one.
This is a really timely reminder for those of us who love all these coupon deals we get. I've had a couple of near misses with these online companies and nearly bought the coupons before I suddenly remembered to double check the terms and conditions in the fine print section (Groupon has this section!) and realised the deal wasn't as good as what it seemed to be. I recently almost purchased a deal for a travel package that was having a 50% discount and the prices were really unbelievably low for all that was included in the package. I turned away from the deal only when I realised that all the relevant airport taxes, service charges and miscellaneous fees were excluded from the stated final price of the deal and the amount I have to top up for all these charges was actually 3 times more than the promoted price which only took into account the price of the air ticket. As consumers, we all have to be sharp if we want to benefit from these deals instead of getting mislead!
I so agree! So many times I have tried a deal online like that only to discover I didn't read the fine print well enough and it came back to bite me in the bottom later!!
I have to say, though, that groupon and livesocial coupons are invaluable if you use them correctly; that is, if you buy something on discount that you were already in the market for. I get incredibly tense sometimes, and I was searching for weeks for a low cost massage therapist and every one I found was out of my price range. When I found a discounted offer on livesocial, I jumped on it.
