Posts Tagged ‘daily deals’
Out with the Old, In with the New
The day we learned the details behind the Daily Deal business model we thought there had to be a better way. There were a couple of articles posted recently that tell the story well when put together.
One on Slate titled “Ding Dong, Daily Deals are Dead” with subhead line “The thrilling demise of Groupon’s crummy business model.” by Farhad Manjoo || Read more
This story just came to my attention and I wanted to share for a few reasons;
- Buyer Beware – Groupon, (Daily Deals) may or may not make sense for your business, carefully consider the impact and options
- I got a kick out his approach at sharing his story
- These are the stories that prompted us to start Qwikon || Read more
One of the motivating factors in creating Qwikon was learning about the business model of the Daily Deals industry. In case you’re not familiar, daily deal companies business model is to drive large numbers of customers to a business by selling a heavily discounted “deal” which is at least 50% off , often even more and collect a 50% commission from on each of the sales. Oh yea, the daily deal company also collects the money from the customers in advance and then pays the business over a 90 day period. || Read more
My friend Karl over at Start Up Daily just posted a timely article associated with one of his book recommendations about the dangers of winning customers on price alone. If you’re not familiar with Start Up Daily, I highly recommend it for any business person. With his permission I’ve taken his post and added a bit.
If They Come for the Price, They’ll Leave for the Price
Discount customers are almost always the wrong customers. At best they can provide is some cash flow, but the hidden costs make them more trouble than they are worth. This is particularly evident with much of the data being presented about Daily Deals customers.