Daily Deal Sites: Do's and Don'ts

There is no denying the popularity of daily deal sites. Thanks to the recession, more and more people are on the lookout for new ways of saving money, and with the combination of deep discounts and daily updates, these websites are just what people are looking for. A few years ago the word “groupon” didn’t even exist, but now many of us find ourselves eagerly checking our e-mail daily to find out what new deals Groupon has to offer.

Sites like Living Social and Groupon do provide many benefits to those of us who are on a budget. They provide the opportunity to try things you normally wouldn’t, like a new restaurant or a new exercise method. These sites give you a change sample a service or product without making a huge financial obligation. I don’t know about you, but I’d rather spend a couple dollars on passes to try out different local gyms to see which one I liked before committing to just one. Also, these daily deal sites feature discounts on things that you need or commonly use, from oil changes for your vehicle to discounts at Whole Foods.

Here are a few do’s and don’ts to make sure you’re making the most of these daily discount sites:

• Do read the fine print. Make sure you know the stipulations, exclusions, and expiration dates before you make a purchase. I’ve seen quite a few deals that specified days of the week that the offer can be used or required that you make a reservation with the offering company before being able to redeem it. Be sure to read everything on that webpage to ensure that you understand what you’re getting and will actually use it! 

• Don't buy on impulse. Part of the reason why these sites are so appealing is because there is a limited number of people can sign up for each offer, and the offers are only available for a limited amount of time. This creates a sense of scarcity, where you feel you have to act quickly so you don’t miss out. The problem is, you may end up buying without thinking, or spending more than you would under different circumstances. Think of how people rush to Walmart to purchase bottled water and bread when a weather emergency is expected. 

• Do research to see if you are getting the best deal. Websites featuring coupon codes or sites like Restaurants.com where you can purchase a $10 restaurant gift certificate for $3 (or a $25 certificate for $10) may offer better deals. Also, checking with local businesses might uncover better discounts without forcing you to act quickly. For example, my local movie theater offers movies for $5 everyday between 4pm and 6pm, which is just as good if not better than the groupon deals I’ve seen for movie theaters in my area. 

• Don’t forget to use your deal coupons! I read that about 40% of Groupon vouchers don’t get redeemed, so use your vouchers as soon as possible or set yourself a reminder to make sure you don’t fall into that percentage. 

• Do consider additional costs/fees associated with the deal. Even if you get a discount for a massage, manicure, or hair service, you still should tip the person who provides you with the service. Likewise, a discount for activities like bowling or golfing may not cover associated rental fees. Make sure you consider these hidden costs when deciding if an offer is truly a good deal.