Mitchel Krause

Mitchel Krause
Daily Deals and Customer Loyalty

Today, the surge in new technology has placed "Daily Deal" sites like Groupon and Living Social directly in front of SMBs, claiming savior status, driving business to those who use them and implying that those who don't will fall behind their peers. The truth of the matter is that convincing small businesses to give away $13 of product for $6 (with an average ticket of $5) and taking, at times, more than half of the $6 for their own profit (and charging the small business back 2.5 percent for purchases via credit cards), does not seem as if this would be a money making proposition for any small business.