| Daily Deal sites are changing the way consumers shop but how are they affecting our economy??? | |
| Date Added: July 02, 2011 05:39:46 PM | |
| Author: pds20 | |
| Category: Work At Home | |
| aily deal sites are growing in popularity because of the advantages to both consumers and business owners. Daily deal sites, if you aren’t familiar with them, offer consumers a great deal on products and services in their local area. The daily deal site markets their website with the vendors’ offers on the internet; free of charge to the vendor.Consumers register with the site and give the site permission to send an e-mail daily; allowing the site to market to consumers daily. The deals are offered for short periods of time or require a minimum number of people to purchase the product before the deal is on. There are various ways that the offers can be constructed. Generally, the consumer must make a decision to buy immediately or miss the deal. It makes sense for vendors (businesses that make the offers) to make an offer on daily deal sites if they have multiple products or want consumers to visit their place of business multiple times. These businesses require volume and it stands to reason that the more consumers are aware of their business, the more business they are likely to enjoy. They have the benfit of free marketing on the internet which most businesses don’t have the time or the expertise to do so. They need and want to concentrate their energies on their business because that is where their expertise and passion lies. Internet marketing is beneficial for businesses because it brings awareness to their business on a large scale. It isn’t enough to have a sign outside your door because people are always rushing form one place to another. They could drive by your establishment every day and not notice your business. I remember years ago, when I had a retail food establishment that had been a bank prior to renovating the space, a gentleman came in to do banking after I had been open for three years. It was funny because he had his deposit slip ready and was so shocked that we weren’t a bank, he kept showing me his deposit slip. I almost took it just to put him out of his misery. It, also, begs the question about how often he does banking but that is for another article. Giving consumers a deal on a product makes sense to the business owner for several reasons. The free marketing is great for businesses. Consumers open their daily deal e-mail every morning and are made aware of the vendor’s business; even if the consumer doesn’t take advantage of the offer. Once a consumer takes advantage of the deal, they go to the vendor’s place of business and the vendor has the opportunity to sell more products and gain a new customer who, hopefully, will come back to purchase more products. Consumers are not concerned about and, therefore do not question, the country of origin of the deal sites because they have to worry about their own finances; as we all do. I am asking that you question it now. The daily deal sites charges the vendors a hefty commission (usually 40%-50%) when deals are sold. If the deal site is owned by a company that is outside the country where the deal is offered, it makes sense that commission is going to the other country. Take Canada and the United States as an example. If a deal site, owned by a U.S. company, offers a deal for a Canadian company to Canadian consumers, that commission goes to the U.S. For example, if a Canadian business offers $10.00 worth of product for $2.00 to entice Canadian consumers to try their product and the business pays a U.S. deal site $1.00 (of the $2.00) for selling the deal, the $1.00 goes to the U.S. company. This small example doesn’t sound devastating but multiple it by the hundreds of thousands of deals offered every day; the results of purchasing deals from daily deal sites owned by foreign corporations has to adversely affect the economy of the country where the offer originates. When there is a commission on one deal of $1 and 1,000 people in 500 cities take advantage of an offer; it equates to $500,000. The commissions are more than a $1 in most cases (usually 40%-50% of the offer price) so the money sent to a foreign country, in all probability, is greater than $500,000 DAILY. In realizing that these deals are purchased daily,do tax payers really want to send their money to a foreign country daily and suffer the resulting tax effects in their country? In closing, I am truly hoping that both the vendors making offers and the consumers that are taking advantage of the offers ensure that the daily deal site is owned by a corporation that is domestic to their country. Since I am Canadian, I would like Canadians to research daily deal sites and purchase deals from sites owned by Canadian corporations to find local deals. One daily deal site in the Toronto area is http://www.dealsfiredup.com. |
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