Great work on all of your Group/daily deals coverage. I bought a deal on LivingSocial, but the merchant is so small and overwhelmed that I can’t redeem my deal for two months, which defeats the purpose of this particular deal. Just wanted to encourage you to explore the overselling of such small merchants. Read on for details…
I bought my first deal on Living Social on Monday: house cleaners for $55. I’m looking for good housekeepers to come to my new home every two weeks. The merchant’s website (http://www.homeprocleaningservice.com/about-us.html) states that they’re a four-person cleaning crew. 12 hours before the offer ended, LivingSocial had sold 446 deals (not sure how high it went). Supposing each home takes one employee two hours to clean, that’s 446 * 2 = 892 hours. If each employee works 40 hours/week, that’s 22.3 employee-weeks or 5.58 company-weeks on top of whatever business they were doing already. Sure enough, they’re now telling me that it will be August before they’re available to come to my house. I’ve asked LivingSocial for a refund, but have not heard a response. In my opinion, they drastically oversold this merchant. There’s just no way four people can service that many homes in a reasonable period (nor can a cleaning business quickly scale up with high quality results).
Anyway, thanks for your work!
— John Lee