I have been curiously watching the 'other' daily deal sites in particular the 'big one' and noticed that over the last two weeks they seem to have been consciously going out of their way to list deals from people who have used our site. What a compliment although one does ask the question why? All the companies out there why do all the deals that we are doing, doesn't make a lot of sense really.
I wonder if it's bully boy tactics, are they trying perhaps to intimidate us, showing us they can make the retailers offer a better discount, a better deal. The thing is though these smaller retailers can't afford huge discounts which is why we don't pressure them to, the big boys seem intent on really pushing these smaller retailers under the guise that it should be a loss leader, a marketing exercise whilst they pick up their tidy commission and merchants effectively make a loss.
I really believe Daily deal sites will go under eventually if they don't address this issue. The discounts are great but they are not sustainable for anyone, retailers are losing money hand over fist and cosumers will expect to be able to buy things for insanes discounts or not at all.
We are trying our best here at KidzGrab not to push our merchants but to work with them to find a deal that works for them and that they are comfortable with.
I speak to so many companies who are not prepared to do more daily deals because of the dreadful experiences they have had, everything from all out bullying to their deal not being what they discussed at all and then having to deal with the consequences and losing money they simply can't afford. One company I spoke to had been 'persuaded' to offer a huge amount of vouchers that all sold and then the company in question could barely cope with the resulting extra business on top of their regulars and the exercise nearly killed their business and cost them a fortune.
Daily deal sites need to seriously address the way they deal with their merchants, they are afteral the hub of their business.
I didn't really expect this to be such a cut throat business. I had an idea and just expected to get on and run my website minding my own business whilst doing it.