I just want to congratulate you on your recent articles regarding the daily deal market! I have been thinking the same thing for the past year or so now, but haven’t had the platform to voice my issues, as you do. My family actually owns a wine bar in Chicago and their experience was much like the experiences you discuss in your articles.
It is very disheartening to me to see SMBs get caught up in the daily deal phenomena and get royally screwed by this. Especially since many people invest their life savings in their businesses and get wiped out by one deal. It’s great that you are addressing the full risks that Groupon is NOT disclosing to them. I also believe the daily deal is promoting a negative trend to the consumer. Pretty soon, people are going to assume they should never have to pay full price for anything. I believe this will create a vicious circle of daily deals and discounts that SMBs will be required to offer to get new & existing customers in the door. I also see this happening with the Location Based Marketing Services, as well. It’s requiring SMBs to give away discounts / specials just to get people in the door.
My only hope is that the economy can recover soon enough that SMBs won’t need to give away these types of deals to appease existing customers and to acquire new customers. The quicker this happens, the quicker the daily deal will die for good!
Regards and Thanks again,