According to a recent New York Times article, the bloom may be off the rose when it comes to using deal of the day sites for your business.

The main reason, according to the article, is that many of the consumers who take advantage of the deals do not return as regular customers and pay full price as hoped.  Heavy discounts become the new normal and the businesses who participate say loyalty is non-existent and lasts only as long as the special deal lasts.

And as a business model, established sites like Groupon, DealSwarm, DealFind and others are being swamped by local competitors due to the relative ease of entry. 

New Jersey-based daily deal sites like and are only two examples of the spread of such sites which, while a boon to consumers, can have a dark side to businesses that offer deals at a loss in the hopes of attracting new customers to their stores, never to see them again after the deals expire.


In general, I’m a big fan of trying new things.  Some things will work, while others don’t, so you do more of what does and discontinue things that tank.

To minimize your exposure I would suggest trying a deal where your exposure is limited or requires some type of purchase to get the deal. 

Buy any sandwich get  a free soda, for example.  Buy 30 minutes of massage time, get another 30 minutes free.  That type of thing.

Bottom line:  try offering a deal you can live with for the shortest possible time commitment and make sure to capture additonal information when the person redeems it at the store, if possible, such as offering them additional deals by signing up for your in-house email newsletter or by liking your Facebook page.  Because all the deal sites “own” the customer already, having already gotten them to sign up for the deals via email, and the customers are under no further obligation to opt-in to your marketing message beyond handing you the coupon they’ve received.  So make it worth their while by offering either additional deals or even useful information.

Be creative. Test the waters.  And please let us know what’s working and what’s not by sharing it with us either here on our blog or by visiting our Facebook page HERE.