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Is it noon yet?

Groupon, Scoopon, Catch of the Day, Grocery Run, Living Social, Cudo, Spreets, Deals Direct, Harvey Norman Big Buys … and the list goes on.

Let’s face it, we all lead busy lives and have very little time to shop. Online daily website deals mean you can often purchase anything from gifts, (for friends, family, or yourself) to fresh fruit and vegetables, without having to leave your busy desk. With the wide variety of daily deal websites out there now, the possibilities of what you can purchase are endless.

From the buying side, it can be quite fun waiting for noon and the next deal to flash up, but the selling side is not always as fun.

There have been several articles and news stories lately with business owners stating that featuring a product or service on a daily deal website ruined their business, or cost them more money than they made. In many cases, the owners have admitted they simply did not anticipate how many people would purchase the deal and the enormity of what they would then have to deliver. In other cases, the owners have declared that the deal did not properly represent their agreement with the website. This can result in the business not being able to honour the website deal.

These situations have the potential to lose some of the valued clients you have worked hard to please, or result in the new customers you were hoping to win not only never use you again, but also tell everyone about the unsatisfactory service they received from your company… and, as we all know, bad news travels fast.

If, notwithstanding some of the horror stories you may have heard, you decide that offering your product or service on a daily deal website is the right thing for you and your business, what should you do to ensure you put your best foot forward?

• Know your business – Make sure that you do not agree to honour more deals than you can cope with. If necessary, limit how many deals the website can sell.

• Cost out the proposal to see what you will make, if anything, and when you will be paid.

• Read the fine print of your agreement with the website carefully.

• Don’t be afraid to get professional advice on the agreement – remember this deal could make or break your business.

• Make sure the daily deal refers to your terms and conditions. More importantly, make sure your terms and conditions are up-to-date.
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For help with your agreements, terms and conditions or general day-to-day business advice, contact our Commercial Business Team.