I am pretty biased against coupon sites. My wife subscribes to all of them, which is cool. But I don’t like them from an advertiser’s point of view.
My wife bought a deal from a site a few weeks ago. She was pretty excited when she told me about it, and we shook our heads in wonder, “How can that business afford to do this?” Then she got this email:
——– Original Message ——–
From: [email protected]
Subject: [Auto-Reply] Cupcakes
Date: 14 Oct 2011 12:01:29 -0700
Thank you for your interest in Little Miss CupCake
Unfortunately because of the issue we experienced with dealfind.com we are not accepting ANY orders for the time being, and we will not be accepting any of the Dealfind vouchers purchased.
We apologize for the inconvenience.
Dealfind oversold passed what I had asked them to,
and then would not turn off the deal when asked to do so.
To top that off, they refused to answer my calls and emails as the deal was going on.
They added free delivery to the deal, which was not the case.
I had told them there was no free delivery allowed.
I gave them rates and delivery restrictions, which they refused to put in my ad.
They also stated that the vouchers could be redeemed all at once,
which is not something I agreed to.
I do sincerely apologize for the inconvenience this may have caused you,
and I encourage you to ask for a refund (Dealfind.com will issue full refunds within 30 days of purchase, I personally cannot issue refunds, as Dealfind has all of the funds)
This is just an awkward mess. How much of this is true, I don’t know. But it looks like a ridiculous offer went out and sold like crazy. The advertiser claims that Dealfind basically just invented the whole offer against his wishes, then disappeared on the day it went out. Now customers are left to sort out the mess with Dealfind, as the bakery has enough to worry about, trying to repair it’s brand from this mess.
I don’t like these sites primarily because the math doesn’t work out very well. Advertisers have to offer steep discounts (roughly 50% off), and then they only get 50% of the proceeds from the deal. So you’re only getting about 25% of the regular price for your product/brand.
Then think about the type of clients this brings the brand: either existing customers already familiar with your brand and just picking up a good deal; or new customers that are often unfaithful to your brand as they seek out new deals from your competition. Now you realize you’ve just paid 75% for a pretty unattractive customer. Can your margins bear 1000 of these customers?
Tomorrow I’ll get into some research done about these sites, and the actual effects these offers have on your brand.