The Great Deal-Of-The-Day Hoax!

So sorry to break this to you but you probably should know what’s going on behind the scenes to create all the junk that arrives in your inbox. If you’ve signed for multiple deal-of-the-day promos, which we’re sure millions of us have, there’s a chance you’ll need to look in your spam folder to find them. There’s a reason the emails get filtered and that’s because they are commercial advertisements.

Our thoughts?  Businesses should never, be able to justify invading your inbox to pressure you into a time sensitive deal for a super saving that you may or may not use, or even be interested in.

Why Group Buying has become ineffective

Are we opening Pandora’s Box here? A group buying website telling you that group buying is ineffective.

Let us explain ourselves

The way group buying works is like a dating service. It’s like all of the top deal-of-the-day websites are spin offs of a Match.com service to hook up local businesses (dates) with potential customers. The deals that find their way into your inbox (or your junk folder) are carefully orchestrated between merchants and the deal website operators, to maximise turnover and revenue – all in their interests.

Technically, they are not “group buying” at all. They are simply discounted offers. It’s the reverse of what group buying should be.

A buying group is a group of people who are all interested in the same product or service. Not a sales rep and business owner crunching numbers and agreeing terms based on how many people they can push through an order page with credit card in hand.

Group buying is consumer orientated.

Deal-of-the-day offers are discounts by numbers.

Where you come into the deal is only when you have your money ready in your hand.  The individual, channelling his energies through the collective group, should instead be empowered to negotiate his own terms.

You are the person spending the money. As things stand currently, behind every deal you’re offered from deal-of-the-day websites, there is a lot of number crunching going on behind the scenes. The broker (site owner), and the merchant (shop you spend your voucher) need to meet a figure that is manageable based on the number of customers coming through the doors.

deals-of-the-day

A salon owner will need to know their cost structure, such as the price for the goods used to provide the service (shampoos, hair dyes and the like) and the time they will need to spend to provide the service. This is why some of the deals may have caps placed on them – to ensure the service can be provided. The deal websites will help the business owner do their sums and reach a ballpoint figure for the cost of customer acquisition.

The easiest way for this to take shape is to restrict the offers to service based businesses because they have more control over their cost structures. They know the figures, have the data to analyse and the business owner is the only person affected by the cost of customer acquisition.

You won’t see many truly amazing deals swing by your inbox for tangible items, because technically, group buying isn’t involved in deal-of-the-day offers. They are steeply discounted prices for services, which are there to get new customers through the door. In effect loss leaders, counting on the fact you will buy other services such as a dry at the end, or a beauty product to take away with you. Full price of course.

How about all the offers for things like microdermabrasion sessions for £79? They have a time limit on them, so you’re definitely incentivised to use it once you’ve bought the discount voucher, but good luck on finding a Nu Brilliance Microdermabrasion System – so you can do the same yourself when you want – in a featured deal-of-the-day.

The reason you can’t find it is because retailers of physical items tend to focus on advertising rather than customer acquisition. Most are only interested in shifting units and not the repeat custom that service based businesses rely on.

For a retailer to be interested in group buying, they need to know the number of people interested in buying the product so they can accurately work out how much they can afford to drop off the retail price.

Every product has a profit margin and with that, there comes price flexibility. That’s bargaining power, and that’s something deal-of-the-day websites cannot tap into. The reason being it is costly to retailers and for them to run a campaign, they would be doing so blindly, because as things stand at the moment, there is no way for them to know that a deal will go down well with any given customer base of any website. The deal is negotiated behind the scenes and you only come into the equation when an email is sent to you pressuring you to buy within a certain timescale.  Look what we have for you to spend on today. If we are honest – most of the time, we won’t be interested in the offer.

CrowdZap conducted an experiment on a basket of 10 goods, as offered by deal-of-the-day sites.  The findings were very interesting.  Of the 10, 6 of the deals weren’t actually deals as they were the same price or less on other sites, such as Amazon.  These were like for like items.  3 were marginally lower, and 1 was moderately lower on non deal-of-the-day sites.

CrowdZap wants to address the group buying dynamic and shift the balance of power.  Remove the bargaining power controlled between merchants and dealmakers and putting that bargaining power in the hands it should have always been in.

YOUR HANDS – the customer!

Through CrowdZap – you can now determine what product you’re interested in, create a campaign to gauge interest, and then have our team reach out to multiple retailers and negotiate the best deal possible for you. When a proven number of backers have expressed interest in any product, our team can seek out the retailers of the products, or even go direct to the manufacturers and make things happen.

It only takes you to create the one campaign, get the word out for people to get behind it who want the same item at a discounted price, and from there, our team can work their magic and make it happen.

Let the bargaining power of group buying be restored to the way it should always have been. With you in charge of what you want without having to sift through a bunch of offers you have never expressed an interest in.

To get ANY product you want, at a discounted price, go here and find out exactly how to make that happen.

Think ahead because in just four months, you will be faced with your biggest spending spree of the year. Christmas shopping! Create your gift list, or look on your Amazon Wishlist for the items you want and get your campaign going.

Create your campaign, promote it, get people behind it and we’ll work our magic to bring you the best savings our senior buyers can get for you.

CONTACT US

Please send us a message with any questions or queries you have

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