Deal of the day websites rose to fame very quickly on the internet. They really are a great idea. The consumer gets a fantastic deal and the merchant gets their business some much needed exposure. Many carpet cleaners initially jumped on the opportunity to expose their business to hundreds of new clients. Most of them were quickly soured by the deal. Those who still participate in these deals are either very new or have different motives altogether. This makes purchasing a deal of the day from a carpet cleaner a risky proposition. Lets look at why a daily deal on carpet cleaning is a bad deal for both consumers and business owners.
Why is a deal of the day bad for business owners?
First off, the business owner will lose money on every transaction. If they charge $90 for 3 rooms of carpet regularly, their daily deal would be half off this price, typically. This makes the deal for 3 rooms $45. What you might not know is that the deal website takes 50% off that. This means that the carpet cleaner is now only getting $22.50 for 3 rooms of carpet. This does not even come close to paying expenses. The deal website will sell hundreds of these deals leaving the carpet cleaner with hundreds of jobs where they lose money. It will take months to get through all of these deals. This means that the business will not turn a profit for 2 to 3 months after the daily deal.
Many of you might now be thinking that profit is not really the purpose of the daily deal, the business is getting exposure and repeat business out of it. Not true. When people talk about the carpet cleaning deal they just got, they will not be talking about the carpet cleaner, they will be referring to the deal website. They will not say I got a great deal on carpet cleaning from ABC Carpet Cleaning, they will say a got a great deal on carpet cleaning from XYZ Daily Deals. Also, when they need carpet cleaning again, do you think they will call the carpet cleaner or simply return to the deal website for another great deal?
Why is a deal of the day bad for consumers?
There are two main types of companies that will be participating in these deals. The first, if you are lucky, is the legitimate carpet cleaner. They do not know any better and are new in the business. They thought that this would be a great way to get their name out because that is what the daily deal website sales team told them. They will quickly become overwhelmed with a large number of unprofitable jobs and this will lead them to start taking short cuts. They will not be able to deliver the quality that they normally would and will begin to resent the daily deal consumer.
The second type of company is the Bait And Switch company. They do not mind the super low price because they do not intend to honor it anyway. These are the same guys who send out those ridiculously low $5 a room carpet cleaning coupons with all of the fine print. Once they get into your home, they will hit you with hidden fee after hidden fee until your bill is more than a legitimate company would have charged. If you refuse to pay the fees, they will either walk out or do a very quick shoddy job. They do not care about their good name because they change it every few months anyway. This is why there is always a new(in name) carpet cleaner on the daily deal website.
As you can see, there are no advantages to the daily deal website for business owners or for consumers. There might be the occasional good consumer experience but this is more the exception than the rule. Save the deal websites for restaurants and hotels.