A Week of Coupons #2

Your daily coupon comes to you from - well... it's your choice. Groupon?  Living Social? Or maybe Google's new Daily Deal. 

After discussing the need to have expiration dates for your coupons, I wanted to expand to online coupons that appear for one day only. This shouldn't be confused with an expiration date because having an offer that only appears for one day still carries a separate expiration date.

All of these daily deals offer your business a great opportunity - although, it must be stated that there are a few things to consider. The first consideration to remember is that this is a form of advertising. Advertising costs money.

When you use a daily deal service you end up losing about 75% of your normal price. Here is how it works.
You offer a product or service at half off.  So your $20 widget is now $10 on the daily deal site. You've lost 50% right there.
When each purchase is made for your widget, $5 goes to you and $5 goes to the daily deal site. That leaves you with 25% for every widget. I don't know about you, but most businesses don't have that much room in their profit margin for that kind of loss.

What the daily deal sites offer are an amazing opportunity to advertise your business to a large group of people who will be excited to try out your business. This also means that when those people visit your business, they will be more likely to come back or tell their friends about your business. This is good news for you!

Just make sure, if you opt to participate in one of these deals, that your business is prepared to handle the increase in traffic!