Showing posts with label sales. Show all posts
Showing posts with label sales. Show all posts
Thursday, 9 January 2014
Why a New Business Should Use a Deal Site like Groupon or Wagjag
Depending on how you perceive couponing or deal sites will depend on your strategy here. In my case, being a self-published and new author, I would consider using a site like this for pure reach and free advertising. If I earn sales from the deal site, that is great, but be warned, your 'take home' is not huge.
Sites like Groupon, Wagjag and Sweet Deals will typically ask for a minimum discount on your product or service up to 90% off the retail price. Then they will take up to 50% of that number as profit when it sells. For example, my books currently retail for $14.50, I would offer them for $8.50 and the deal site will take $4.25, leaving me with a 'take home' of $4.25.
Why would a company ever use a site like this if it cuts so deep into profit margins? Strategy is the correct answer. These are a few reasons why it may be a good tactic for your business.
Sites like Groupon, Wagjag and Sweet Deals will typically ask for a minimum discount on your product or service up to 90% off the retail price. Then they will take up to 50% of that number as profit when it sells. For example, my books currently retail for $14.50, I would offer them for $8.50 and the deal site will take $4.25, leaving me with a 'take home' of $4.25.Why would a company ever use a site like this if it cuts so deep into profit margins? Strategy is the correct answer. These are a few reasons why it may be a good tactic for your business.
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