I came across a heavy discount yesterday for a resort with scenic beauty (the uploaded pics looked scenic!). When I was about to buy them online I looked out from the window. It was hot sunny day, obvious its summer! I gave a second thought and got a strong NO to opt for the discount deal....at least I did not find it interesting to roam in such a weather! I closed the browser and got cracking to routine work. Apparently that was The End of the story. But actually the thought process began from here!! It is obvious in giving such heavy discounts during such off-season. But what about rest of the deals, how and who is benefitted?
Some sites offer buying in group. When minimum number of purchases are being made then only the discount holds valid. This encourages you to provoke like-minded ones from your network to buy that. Indirectly you are marketing for a service or product. Sometimes you do this for free (because you want to avail the heavy discount for yourself) while sometimes the site pays you. You bring referrals and you get further discount or a fixed amount incentive! Win-win situation.
Most of the deals are valid for a very limited period. Usually new deal gets posted in 24 hours. This gets you in hurry and no worry mode. You want to grab it, you quickly opt for it. Redemption rate of coupons is seen to be high on services like spa and restaurant. Does the restaurant really afford serving you at so cheap rate? In case of services like these there is already a heavy margin of profit at their end. You will rarely find such a deal for dinner where folks already crowd up for dinner irrespective of the day.
From the merchant's side too these deals are profitable. The merchandise is being bought in bulk, so he can easily afford to give bulky discounts. Or the second is his merchandise is being sold in off-season. For sure the deals' site which has direct dealing with the manufacturers can offer the best and hence will be able to attract maximum online customers. What you say?