Daily Deal Sites for Small Businesses
Daily Deal sites promise for small businesses because they help them access a wider market and
make a profit through higher volumes at lower prices. One of the latest web services that day
sites like "Groupon" Living Social and local as 'TryItLocal' to help small businesses reach their
target customers, the online search is specific to their products. These sites offer large discounts
on selected products to attract more customers. The promise of more business, more of the
masses, higher profits and greater market access pushes small businesses noticed on such sites.
However, this route to sales success full of pitfalls, five of which are listed below:
First A high percentage of the sales price must be shared Daily Deal sites like "Groupon" expect
50% of final sale price as service fee. This is not a small amount and the small business is just so
much that barely cover their costs, with little room left over for making profit. The hype is to
earn money is not handed down.
Second Hefty discounts bring the image of the brand-A rebate diluted the value of the brand of a
product, and it loses its charm in the eyes of the customer. Initially, it may be an incentive to sell,
but this is not sustainable, because the perception is the people that these products are not
superior to his. Small businesses need to build a brand image, do not cut it in its nascent stages.
Third First regular customers is harder Signing up with a daily deals, possibly with thoughts of
suicide, as customers may never return. The success of a small business is its ability to get repeat
customers. That's because it dilute the image of the product and doubts about its quality.
4th Not serving bargain hunters relationship oriented, brand-loyal customers, the market has now
two types of customers, one that bargain hunters without loyalty or preference for certain brands.
Such customers are always looking for the best deal and buy the cheapest product. The second
type of customer is one who seeks quality, like a discount, but would rather pay a bit more for a
better product that, if he likes, he will buy over and over again. Such customers are to connect
better to build relationships, and they are the ones who will support the small businesses.
5th The loss of the integrity of price-price integrity refers to a standardized price will be provided
by any customer. To some direct customers to pay full price, while others get a discount for the
same product at about the same time from another location, is unfair. It casts a doubt on the small
businesses and provides a specific set of unhappy customers, which can never return.
Daily Deal sites may offer advantages for small businesses, but they need to be targeted, may sell
for a special range exclusively through them, so that the pitfalls listed above can be avoided, and
they can be used for better business prospects.