Talk about a deal!

Taking a closer look at group buying websites

According to DailyDealMedia.com, the Web's leading source of information on the daily deal industry, there are now roughly 1,791 group buying websites in North America and a total of 9,575 similar sites around the world. Consumers are crazy for collective buying – 50 percent off this, 75 percent off that – why bother paying full price when sites like Groupon and LivingSocial are practically giving products and services away for free?

Group buying sites worth checking out

Not all group buying sites are created equal. Here are three great choices for Canadian bargain hunters:

• SmartBetty.com

  The more you save, the more you give with Smart Betty and her collective buying program. This is because every time you purchase one of Smart Betty's money saving deals, the company gives 10 percent of their revenue back to a local not-for-profit that you choose to support.

• WagJag.com

  If you're looking for variety, WagJag is a great place to start your search. This site offers daily deals on more than just meaningless services. In fact, the site includes a section dedicated to grocery deals. WagJag.com is also linked to their partner service, Jaunt.ca, which offers great daily deals on travel.

• RDeals.ca

  The final quarter of 2011 saw the birth of numerous media and publisher company-powered daily deal sites. Take RDeals, for example. Rogers’ latest project is still in its infancy, but expect to see some awesome and rather unique offers once the ball really gets rolling. Proof? Recent deals have included half-off lower bowl seats to the Toronto Raptors and 65 percent off Android tablets.

Never miss a deal with group buying site aggregators

If you love daily deals, but hate how they bog down your email account, consider subscribing to a daily deal aggregator, rather than individual sites. Aggregator sites are designed to collect the deals from various group buying sites and then deliver it to you in one clean email. Our pick for best aggregator? DeliverTheDeals.com which provides details on offers from Groupon, LivingSocial, MadDeal, WagJag and a handful of other great Canadian collective buying sites.

The dark side of group buying

Deep discounts and irresistible offers make for big savings, or at least that's what these websites want you to believe. The reality of the situation is often much different. From less-than-stellar service to impulse buying, there's plenty to be weary of when browsing your favourite daily deal site.

• Looks can be deceiving

  Remember the age-old saying, “If it seems too good to be true, it probably is”? The deals on these websites aren't always as impressive as you might initially think. After all, collective buying programs are designed to make money. Before you fall for the hype, stop and think about the offer at hand. Group buying sites are often dominated by lifestyle offers and other service specials. This is because these sectors boast some of the largest margins around. Rarely do you find basic commodities on offer as part of a collective buying deal – they're simply too expensive.

• You may become irrational

  Daily deal sites are addictive. Sign-up today, and you'll be inundated with text messages and emails from now until the end of time. And while you could ignore them, the truth is you won't. You'll feel obligated to check out every offer, every day because what if (gasp) you miss out on a golden saving opportunity? How could you ever live with yourself if you missed the opportunity to save 75 percent on a foot massage?

• Impulse buying at its worst

  Just because something's on sale doesn't automatically mean it’s a great deal for you. Is saving 50 percent on a carwash really crucial? You could just clean the thing yourself, like you normally do, for free. Don't let group buying deals trick you into making poor purchasing decisions. Resist the impulse to purchase (nearly) every offer just because it looks like a solid deal. Remember, you save 100 percent every time you don’t buy.

• The service may be less than exemplary

  It's no secret that businesses participate in group buying offers in order to attract more customers. Unfortunately, very few businesses actually plan for the onslaught of activity they'll encounter once the deal is live. Poor planning on the part of the business owner could result in long lines, reduced quality, and less-than-stellar customer service.

Stop and count to three

Being a bargain hunter is a good thing, but not if you're continually buying items you don't actually need or even want. Before you commit to the deal, do a little research on the business in question. Have they offered a daily deal before? Is there good feedback posted about the company online, or is it mostly negative? As with much in life, a little research goes a long way. It’ll help you get the best bang for your group-buying buck!

 

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