questionsdid you read this - daily deal discounts are…

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For some reason page isn't loading for me

Google cache: http://goo.gl/LEYCA (here's the text only version if that is loading slow: http://goo.gl/83ZFD )

Haven't read it yet though.

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This isn't surprising at all.

"List prices" and percentage discounts are next to meaningless and have been so for a long long time, especially in service industries. To actually get a good deal, you need to do your research and know the value.

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Overstock was sued by some DAs in California over inflating their prices to show larger discounts: http://www.sltrib.com/sltrib/money/52177683-79/overstock-price-com-attorneys.html.csp

Not sure whatever happened with the case, probably settled with a promise to not do it again (or not to get caught).

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The article seemed to only be talking about "service" deals, what about consumer products?

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@dutchpants: I saw your comment about service deals versus product deals. Our company deals with many other companies in our Custom Software and Web Development division and I have to say that when a company puts Products on the site, it usually is a really good deal. The most recent company we set up and worked with offered 75% off of their product and offered it in the form of gift cards - It literally was 75% off of the normal price. When you factor in manufacturing the product, importing it, shipping, etc. they actually lost about $1.50-$3.00 on the deal. There are two main reasons why they did it - 1. more exposure of their brand and 2. Most customers end up buying more than what they set out to buy. For those that didn't, they lost the few bucks on each order.

I think when it comes with the service industry, they are probably taking the average cost for the local area - being they do not have a set MSRP like products. I do not say I personally agree with it but I never pay

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@dutchpants: pay attention to MSRP when purchasing products anyway. I don't think many people do. The deals on those daily deals sites are generally a better deal than you would get normally. They might not be as drastic of a discount as the site shows but it is still better than normal.