Why Daily Deals are Dangerous
I understand that there are some very responsible people in the world who can use credit cards for points, coupons for cash savings, and cheat (binge) days on diets to sustain weight loss.
I am not one of those people and you probably aren’t either.
I usually don’t read the newspaper anymore, so I don’t remember the last time I saw a coupon, but I have noticed a surge of online coupon companies like Groupon and Living Social, presenting their daily deals.
Their ads are usually eye catching and the considerable savings they sometimes offer can seem irresistible.
If you’ve ever justified a purchase by saying, “It was on sale” or “I only paid…”, then please keep reading. Everyone likes a bargain, and if you aren’t paying attention, you might think you are getting one.
Why Daily Deals are Dangerous…
Dangerous To Consumers
- They steal your time. When you sign up to receive the deal of the day, you will get at least one every day in the form of an email. (+ more from their sponsors) You will take the time to open the email, consider the offer, click through to research the deal and send it to your friends.
- They steal your money. There may be a great deal on something that you already buy, but chances are, you are going to try something new (because it is such a great deal). You will spend money that you did not plan to spend. The next time you consider spending money to save money, please try and explain to yourself how that really works.
- They steal your attention. In your attempt to lead a simpler life, you might find you spend less time at the mall and you don’t consider shopping to be a recreational activity anymore. Congrats! Now that you aren’t gazing through store windows and trying on shoes all afternoon, make sure that attention didn’t turn to shopping for a deal, just because it’s in your in-box.
Dangerous To Businesses
- They steal your time. You will spend a great deal of time considering this advertising option. You will spend even more time trying to manage it.
- They steal your money. Coupon customers are typically not long term clients. If you do something cheap for them once, they will not come back and pay full price. When you devalue your services, your message is that you can do it and sell it for less, and that becomes the expectation. You may notice an temporary increase in traffic, but a decrease in profitability.
- They steal your attention. While you are giving your valuable services away, your current client base will suffer because they will not have your attention. You’ll be thinking about how to please your new coupon crowd, instead of your hard core customer. Instead of giving free stuff and discounted rates to consumers who don’t match the demographic of your clientele, give something to your clients for referring your business to their friends. Don’t you want more people like them?
Once upon a time, I used to spend precious Sunday morning hours pouring through the newspaper. I usually skimmed the headlines on the front page and then went to the beautiful, fat (at the time) advertising section, where you could read about sale after sale, and see all the new and exciting things department stores and make-up counters had to offer.
Because of minimalist fashion Project 333, I don’t pay attention to sales anymore. All the great discounts I’ve received over the years never resulted in more money in my savings account. The only thing a good deal has giving me is a little ego boost, like I was so clever to buy those extra pair of shoes because they were “buy one, get 50% off”. I only needed one pair of shoes for $50, but landed 2 pairs for $75…not so clever.
If your love affair with the daily deal has gotten too serious, break it off. Just because something costs less shouldn’t make it more desirable. More affordable yes, more valuable, no. Do you find daily deals, sales and discounts hard to pass up?
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26 Responses to “Why Daily Deals are Dangerous”
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Like you, I’ve weaned myself off of great deals when shopping for clothes/ shoes. Because of Project 333, I know exactly what my wardrobe needs to function well (at this point, I’m preparing to buy a 3/4 year trench with removable lining…P333 has made me much pickier, which is a good thing). I subscribe to a couple of daily deal sites. Usually I delete the emails before reading, which tells me they should be part of my on-going “break up” mini mission. The only thing I’ve purchased are discounted mani/pedis, which I do like to get a couple of times a year (and hate to pay for).
Thanks for making me think about how much time and energy these take from me!
I totally agree – and the same goes for fashion & lifestyle web sites and magazines. I used to read Cosmo and all kinds of glossy magazines whenever I could, get Facebook updates from trend-related sites etc. It only makes you start thinking you don’t have the latest things and you definately need to go out and *consume*.
There are women at my office who have *dozens* of boots, for example. I just decided being known for being trendy is not on my topp 100 list of priorities in life
Granted, I still need some relatively dressy clothes for the office, and would feel uncomfortable not wearing any make-up – but consumption of those type of things can clearly be cut by about 75% without any harm done.
This is such a good point. I need to unsubscribe from those emails for the same reason I refuse to get a credit card for points.
Miss Britt – You go girl!
I agree with you on the money you can lose while buying things you don’t need. But I still like these sites like Groupon because I just look at them when I REALLY need something.
Last month I needed some new headphones because my old ones broke, so I picked out some by testing them in the store and reading reviews about them on amazon. They were expensive and I wanted to wait until they were on ebay or something like that. And then they were on groupon (or dailydeal or whatever) for a really cheap price.
But it is only some time that you find things that you were really looking for. I have to stop looking after every bargain and sale… it is kind of an addiction, and I hope I can break through with minimalism and needing less.
Your blog really helps – thank you!
Dori, Thank you! That awareness you now have is 1/2 the battle. I think that bargain/sale is more than an addiction, but a lifestyle that most people grow into. I love that we are changing the way we think about consuming together.
Love this! From time to time, I’ve found some great deals … but more times than not, I’ve spent money I wasn’t going to spend anyhow.
I agree..many times I end up getting swept up by the “buy one get one 1/2 off” or buy two get one free – when I only needed one (pair of shoes or whatever)…And spending and buying more than I had planned!
I’m just glad it offends me now instead of feeling proud about my “great buy”
I think the “time” part of daily deals is key… Without all of that in my inbox (and without the option of even thinking about shopping), my life is much de-cluttered…
But we all need to be reminded sometimes that just because it’s on sale doesn’t mean you need it, or even want it! Thanks for that! : )
Amen! That’s exactly why I’m not buying anything for a year (i.e., all of 2011). Wrote about that here: http://theminimalists.com/newyear
Your point about them “stealing your money” is often understood by the masses, but we often forget about these kinds of offers stealing our attention and time, which are even more precious.
This is why I unsubscribed from Groupon et al last fall. I was buying things I didn’t NEED. And wasting time thinking about it.
OMG So True! I am on two “daily deals” email lists and buy stuff I don’t need because “it would be fun to try”… but I don’t need it. And apparently, I don’t want it much because often my “deals” just sit there unused for awhile, until I “get myself” to go use them. One even expired before I used it ($20 out the door). Arg. OK… I’m unsubscribing! Thanks Courtney ; )
Yah! Just opted out of all emails and removed my credit card info ~ ah that feels good!
Wahooooo!! Looks like you closed the gap between awareness and action.
I do agree this can be a problem for people. I have unsubbed from quite a few, but did keep my subscription to Groupon. Many times the deals are for experiences as opposed to purchases, and we are attempting to try more things, as well as eating at different types of restaurants (our weekly treat). So I just take a quick peek and usually within 2 seconds I know if it is even something i want to read further.
Bernice
Are we there yet?
I, too, have used Groupon and LivingSocial to purchase experiences (things I’d thought about trying but wasn’t willing to spend $50 or $100 on if I wasn’t sure I’d like the experience) — it’s been a great way for us to explore new restaurants in our area, tried Hot Yoga (didn’t like it), tried Boot Camp (loved it, am now paying full price!), taken the hot air balloon ride (would really do that again at full price!), have a glass blowing date (am going to take a friend for her birthday present!). Can understand the ‘thrill’ of the sale and really have avoided purchasing ‘things’ with the coupon emails. I do think they have their place if you’re looking to expand your hobbies, horizons or experiences or explore the areas around you in a different way.
I’m with you here, CC. I think balance is required. I used a Living Social deal to buy a month pass for hot yoga. I’d always wanted to try it but couldn’t fork up the $115 initial price. I paid $30 for a month, LOVED it, and now my studio has me as a regular yogi (thus doing something I enjoy and supporting a local business). I do like to practice yoga at home, but you can’t really do hot yoga at home and I like having the instructor as a guide. Plus, I’ve taken painting classes (which I LOVE and have gone back for more, seeing as I need teaching) and eaten at my favorite sushi restaurant for half price (which I LOVE and I go back and pay full price pretty often).
I think Groupon and Living Social are great for experiences and great ways to test out things you want to try but don’t want to spend a lot of money on. You do have to be careful, though, that you’re not just buying stuff to be buying it (which I admittedly did once with Groupon–I learned my lesson!). When you have to consume or choose to consume, be a conscious consumer.
P333 was a good reco~
Inspring site, love it, ths
Glad you like it Sandy!
So true! We do not subscribe to these by choice, a very conscious choice because we know where it will lead. Still, we listen to the free version of Pandora and get so tired of hearing their ads, the more nonconsumerist we are the more we find that ads and these so called opportunities (more like sanctioned theft) turn our stomaches. YUCK! Thanks for bringing this up, though, it just reinforces our decisions and sense that we’re on the right track.
I think its unfair to a certain extent to say that we are forced to partake in these daily deals.And also I dont think it is teh intention of the blog to advise you to unsubscribe from these mailing lists as well.I understand from reading the above that it comes down to self control.
I am subscribed to three various mailing lists with daily deals/ discounts and coupons for just over three months now.And I have purchased only once from them even though there actually really good deals ! To me it comes down to the fact that if you cannot afford it then do without it.Should there be something that is valuable and in a way would be of benefit to ones shopping list then why not take advantage of this deal?
You can only make it difficult on yourself! In today’s time one seems to indulge more in unecessary purchases and desires rather than the needs and requirements.I can only suggest that one has to have that self control to find and understand that balance when it comes to purchasing.So even if you unsubscribe from these lists you will still be exposed to these sort of promotions.Whether it is email / sms / billboard signs / newspapers / magazines /television / radio and even your milk carton.
I dont think it is easy to escape this temptation but to have SELF CONTROL….
When Groupon started (and by dint, when I started with Groupon), I bought several coupons for things I’d been wanting to try: acupuncture, reformer pilates, pole dancing lessons, etcetera.
However, after having those great deals sit in my inbox for between 3 and 6 months before forcing myself to use them, I realized: if it’s not nearby and I don’t already like it, I’m not going to use it. I’m now subscribed to 3 group buy email lists, but I don’t even read the emails most days. It takes 15 seconds max, and probably one time a month, saves me somewhere between 20 and 50 dollars on an indulgence I may not have otherwise made.
Is it worth it? Spending 7 minutes on a $20-50 purchase that either I would have made anyway (thus saving ~50%), or that I was interested in making but hadn’t decided on? Probably.
Was it worth it to spend money on the ones that it takes hours of planning to use? Absolutely not.
Overall, I’m still thinking on it.
I don’t get it?
I can see why you wrote this, but we bought a rafting trip for my family and it was the best day of my life!