Online deals

Posted in Businesson Jan 19, 2011

You may have heard of the recent popularity boom of online deal sites like Groupon or LivingSocial that offer one day deals good.  Typically they offer a deal for a local merchant where you buy a gift certificate to that merchant for something like half of the price.

These are often temptingly good deals.  This is good for the business because they get a bunch of customers that they wouldn’t normally get.  This is good for some customers because they get a good deal.  It is bad for people who are suckers for a bargain because they will spend a whole bunch on “deals” that they wouldn’t normally consider.

So normally I ignore these deals, but today (Wednesday) I found a deal that I couldn’t pass up.  It is a $20 gift certificate to Amazon.com for only $10.  I was just telling Sandy this morning that we buy a lot from Amazon.com, so when I saw this deal, I went ahead and did it.

At the end of the day, it looks like they sold 1.3 million of these gift cards. I’m sure that cost someone a pretty penny, but it did end up getting a lot of publicity.

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