As I mentioned in my post on June 7th, I was looking at a manicure pedicure deal on Groupon. Sure enough I purchased it. A mani-pedi plus a massage for $45, you can’t go wrong! Or can you?
Due to my recent purchases with these online deal sites, I decided to do what any other online purchaser does..look at reviews. I looked at reviews and comments from an article on everydaymoney.com, and turns out I have more to worry about than my lack of motivation to actually redeem the deal. Other users have experienced poor service because the business did not have a sufficient amount of staff to handle the influx of people; or worse yet they’ve arrived to use their coupon only to learn the company has gone out of business. Some customers were shocked to learn how much money these coupon sites keep in profit from a purchased deal, whcih can be upwards of 50%. They were more willing to buy directly from the company so they don’t get cheated out of profit (very heroic of them).
In between all of these customer comments and complaints, I got a glimpse of what it’s like for a business to offer groupons to customers. Most were frustrated with the fact that the majority of coupon users do not live in the area. So the odds of them traveling to who-knows-where to pay regular price is very slim. One business owner shared her experience of having a groupon user sell her coupon to a customer who would’ve otherwise paid regular price, resulting in a lose of $30. All because the coupon user didn’t want to use it anymore... Ouch.
One comment that caught my attention, was when a groupon user said using their coupon at a restaurant or any other business changed their perception, causing the business to seem ‘cheap’. I agree, especially as this person points out there are not many higher end restaurants that you would use a coupon for. The article from everydaymoney.com also points out that sites like Groupon, Living Social and WagJag are changing the amount customers are willing to pay for products. We’re so use to being offered a deal, that paying regular price is becoming more and more obsolete.
Regardless of the amount of mixed reviews these coupon sites have received, they are growing in popularity. According to Forbes.com, Groupon alone has experienced sales growth from $30MM to more than $700MM between 2009 and 2010.
It seems like I could go on forever about online couponing as there is so much information out there. New articles and reviews are popping up faster than I can keep up with them. So for now I will take a break from my Groupon research and instead treat myself to a nice relaxing manicure and pedicure. C’mon it’s well deserved! Besides, researching how to save money is hard work hehe.
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