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Think twice when dealing with daily deals

Redeeming the deal can be a disaster
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Try to wait a few weeks before redeeming your deal. If the deal website sold thousands of deals at a local eatery, do you really want to be part of that chaos in the first week?

"You'll be wasting your money because you'll likely have a bad experience," says Vincent Schiavone whose company, ListenLogic, advises large companies on social marketing. "Also, you may not realize that the establishment makes little to no money on your visit, based on how these deals are set up by Groupon and LivingSocial. And so they are often underemployed and unable to handle the slam."

Merchants typically get 25 percent of the value of the coupon, according to The Wall Street Journal. For example, if Groupon is offering $50 worth of food at a local eatery for $25, the restaurant gets only $12.50 and Groupon takes the rest.

Schiavone advises you check Yelp.com for reviews to make sure there are no problems with your deal at that establishment.


 

 

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