Ok, some of you may remember my previous thread regarding living social.
The rep was nice and overall the meeting was good. I've made a new contact.
Anyway, I know I was on the fence before regarding LS but it's official and I'm going to pass up running a LS deal for the bakery.
Here is why. Besides the horror stories I've read (Groupon Deal Burns Small Bakery With Orders for 102,000 Cupcakes - ABC News
) it's not a good fit for businesses selling goods.
LS wanted us to run a typical daily deal of at least 50% off.
Out of that 50%, LS would take 40% and we would take 60%.
It might sound good, bringing in new business, possible repeat business, and from an SEO point (gaining links from LS). But, it's not enough when you have labor, cost of goods, and overhead to account for.
I see how it may be worth it for service related businesses, but for businesses that sell tangible goods, it could end up a nightmare.
I'll just stick to EDDM for now. We can even run our own "daily deal" via postcards and actually keep 50% and build our list!