Originally Posted by amphkingwest
Just to highlight this. As a business we were being encouraged to provide a €30 for €15 voucher, so consumer pays €15 and gets €30 voucher to use in store.
The actual cost to us as a business for you to redeem this would have been €22.50. The fees are 50% of the deal price!!
The guys doing the valetting were most definitely doing this deal at a loss regardless of how many were sold. I wonder how much return custom they will receive from this at their normal retail price? Will the extra 145 customers pay ful price next time or will the guys have to incentivise these customers to return again?
Therein lies the problem with these deals from a business perspective.
I've gotten deals in the past but never returned as a customer,so far at least.
Its great for the customer but I remember going to a tourism marketing conference in DCU last year where people asked should their businesses be doing these deals.
The resounding answer from the panel was NO.
If it is going to be done, it needs to be managed and limited to a maximum number of vouchers.
One food delivery company in Dublin sold over 2000 deals last summer, didn't get paid on time by the deal company, couldn't pay their suppliers and ended up with a lot of unhappy customers who didn't get their orders as a result.
The negative publicity destroyed what up to then was a good business.