The Daily Deal bubble continues to explode. VCs pour in ever more money. Aggregators and white labellers build out the market. Major estores and sites like have even joined the fun. Amazon bought Woot. Twitter has @earlybird. Marketers contrive 90% off packages that include “free” services, fake retail prices, and future discounts.
It’s no coincidence this product segment took off during a global depression. It’s 2010-style coupon clipping. This isn’t just a discount. With today’s deals, you don’t just avoid paying retail. You can buy at wholesale prices.
The deals started to move discontinued merchandise. It was only a short hop to extend them to service businesses that have a high margin. Now there are so many deals that you can get much of what you need – such as PC … headphones … restaurant … massage … golf … trip – all at 50% off. Or more.
This isn’t just promotional marketing. It’s deflation in action. People have less money and are spending less. Businesses have to cut prices.
When was the last time you paid regular prices for dinner when you could have used a 50% off deal?
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