Sticky Situation: Deal Site Dilemma

How do you make daily deal sites work to your advantage?

The Situation: "Daily deal sites ask you to cut your prices in half and then typically take about 50% of the profits, so you are only left with 25%," explains Shala Farshid of Shala Salon & Day Spa in Orlando, Florida. "As a spa owner, that is not an ideal marketing tool, but we've had special circumstances in which these sites have benefited our business."

The Solution: "We had an instance in which we had just hired a new employee and were looking for a way to help her build her clientele with minimum cost," recalls Farshid. "A daily deal site approached us and we agreed to sign up up with them. We explained to the new hire that although this promotion may not bring immediate revenue, it could be effective in building a loyal client base. She accepted the terms and had around 120 new customers. She was so successful with this promotion that about 30% of the clients came back to her!"

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