Daily deals loosing their appeal

Daily deals loosing their appeal

Posted on August 30th, 2011 by admin

 
How many half off Margaritas can you consume in a week?  With the proliferation of deal sites and jammed in-boxes, the infamous daily deal is loosing its luster.
 
Some major players have opted out of the frenzy.  Facebook announced it is dropping their “Facebook Deals” and Yelp is cutting their sales force in half for “Yelp Deals”.  Bloomberg reported that in July 38 deal sites closed while another 32 opened.
 
Some of the lost interest comes from the perception of value for as product.  A heavily discounted product is often seen as lower value and quality.  Many people would never have even visited a restaurant if it were not for the coupon and then confirm that they will never go back and pay full price.
 
Obviously there is room fro a few players and Groupon and Living Social seem to have the mass to continue.  All the other sites are competing for in-box eyeballs and will likely see the delete key before they hit the “Buy Now” button.
 
See the full story at “Money Land”: