How to make ‘deals’ work for your business
If you’ve been watching competitors clock up sales by offering bargains and advertising them on the ‘deal’ websites, then you’ve probably wondered whether your own business should deal itself in?
Maybe, but not before answering a few preliminary questions: What’s involved? How does it work? Who benefits and why? Should my business give it a go? If so, how do I create an effective deal?
The concept behind the deal website is quite simple. Deal website owners house a database of customers who have registered with them in order to receive information about their offers. The businesses have services and products to offer. Snap! So the deal website owners and the business unite to create a ‘deal’ (usually consisting of extremely discounted products or services) to offer to the database of customers. In exchange for offering goods or services on these websites, businesses are promised exposure to large numbers of new customers. Unlike traditional advertising, if the deal doesn’t generate customers, there are no costs to advertising the deal.
Here’s the catch – the minute you secure a buyer for your deal, you incur costs. The commission charged by deal websites is about 50 per cent of the purchase price you advertise the deal for. For example you sell a $50 haircut through the deal site and incur a $25 dollar fee.
Further, there are indirect costs to running a successful deal such as extra administration to manage bookings, additional labour, extra shipping or travel, and so on. So it’s important your business fully investigates the affordability of running a deal, before signing up.
Unfortunately, businesses struggling to master this new way of reaching potential customers are paying both financially and with their reputation. Understanding how to create your deal in such a way that you can deliver it, is vital to maximising the deal’s benefits and transforming new customers into repeat buyers.
‘Deals’ are absolutely doable, you just need to do a little research and planning before you go and reap the rewards.
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