As Groupon continues to grow in popularity, the question remains as to whether or not it really does save you any money. Daily deals sites seem wonderful in principle. It’s hard to resist a massage at half price, a restaurant voucher that saves you a big 75% off or a round of golf for next to nothing at a course you haven’t tried before. In fact, it seems that the more you spend, the more you actually save.
But if you’re not too bothered by golf, would you have played around at the particular course, or eaten at that pricey restaurant if you hadn’t before? It’s not likely and if you hadn’t come across the daily deals you may never have spent the money to begin with.
The Mass Appeal of Discount Sites
Daily deal sites like Groupon and Deal Zippy are appealing to many in the days of recession, from struggling students to coupon fundis, some specials just seem too good to pass up, but one wonders if they know how much they are actually spending, as opposed to how much they are saving. According to an analysis in the U.S, the amount of consumers spending on such deals is expected to increase by around 35 percent annually. But although consumers feel they are getting great deals, would they really have spent that money? Should they not rather be putting such funds towards emergency savings?
Sites such as these encourage impulse spending as they impose deadlines on their deals and make it almost impossible to plan for purchases that could fit within a budget. Instead, consumers are urged to buy and buy quickly with the lure of incredible savings before missing out. In fact, it has been reported that nearly 22 percent of consumers don’t even redeem their vouchers or coupons, such is the desire to save money obtaining the deal.
The daily deals sites are geared towards supposedly budget-conscious consumers, but surely the money spent on deals would be better used for more practical means like savings funds or paying off debt. Although spending a few Pounds or Dollars here and there might not feel like a sacrifice and the sites are certainly great for sourcing gifts at discounted prices, the amounts do add up and in times when financial markets are unstable and unemployment is rife, it is more important to watch every penny spent and benefit from saving as opposed buying into deals sites.
