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Old 11-04-2011, 10:01 AM  
TheSquealer
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Join Date: Oct 2004
Location: In Your Head
Posts: 25,093
Quote:
Originally Posted by vsex View Post
Living Social has muuuuuch better deals
Better deals for who?

People seem to have a fundamental misunderstanding of their business model, who wins and who loses.

There are 3 parties to a deal.

The Buyer
The Site
The Seller

- The Site wins. They get paid no matter what and take a huge % of sales

- The Buyer wins because they get cheap shit

- The Seller loses because they don't understand the disastrous consequences of offering deals at a loss to people who will not become regular customers. This is why all Groupon/Living Social et al feature retarded small businesses like Billy Bobs Alligator Airboat Tours and not Best Buy or Toys R Us.

Daily Deal sites prey on the desperate and ignorant as an important and necessary component to their business model. The problem with relying on the ignorant as customers and seeing such massive success is that everyone eventually gets educated.
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