Planning, is a crucial in this business; its importance simply cannot be overlooked. There are thousands of businesses still counting the costs of getting their daily deal wrong … and others that simply no longer exist.
Planning really is that important when considering running daily deals.
Without a clear strategy no business can really flourish and running daily deals are no exception. Unlike other businesses daily deals require some necessary planning to make them successful. In this post, we’d like to shine a light on some of the interesting points one should consider in order to be profitable in the long term.
A few points that I’d like to highlight in this post are as follows.
- Understanding deal business
- Type of customers
- Basic knowledge on setting up deals
- Cost estimation
- Who succeeded and failed?
- Advertising cost and techniques
- Buying great deal scripts from reputed company
Let’s discuss each and every point in details to get the complete idea for planning.
Understanding the daily deal business:
You need to get an intimate knowledge of your business and costings. It’s no good running a deal if you’re not accounting for every cent. Get acquainted with some of the deals already on Bogof and other daily deal sites to develop an understanding of what this entire business is all about and what it takes to set one up.
Fortunately, Robertson Chartered Accountants have made the job of setting up deals easier with their deal calculators. The calculators crunch the numbers and spit out the results in an instant. You’ll know in an instant if your buy one get one free or bundled deals will make money or drive you into the red!
Have a good look at the market penetration your business has compared to competitors as it could help you gain a good insight into the way forward.
Type of customers:
Next to understanding your business, you should have a clear idea of who your target customers are going to be. Setting up a daily deal with no specific target customer demographic could turn out to be a nightmare for your business. Invest some quality time on analyzing and deciding the type of customers you’re planning to sell to … and craft an irresistible deal for them.
Basic knowledge on setting up deals:
Gathering a basic knowledge on deals and their characteristics is recommended as it provides you some useful insights on how to set up deals which can drive customers and money to your website. Deals are tricky, especially if you don’t understand which one to implement on your deal site. Analyzing different sites offering deals and understanding which are performing hot would be beneficial for YOUR deal success.
Evaluating the costs before setting up a deal business is crucial. Lack of planning could easily lead to cashflow problems. The deal business can be a costly affair if you get it wrong, so, you need to move forward with caution to make it work for you. Speak to some of the deal businesses that have already invested in this area and are making a go of it. This could help you budget plan and set monetary goals to be invested in setting up special offers.
Who succeeded and failed?
Analyze various deals on other deal websites measuring their success and failure.
Advertising cost and techniques:
To make your deal business really successful, advertising to your existing client base is essential. Let them know where your deals can be found. Remember, the more traffic a daily deal website can send to your deal, the more they will charge you. Huge commissions by the big players often make deals YOUR deals unsustainable. Most daily deal sites are all about THEIR bottom line … not yours!
They’ll drive you to post the best possible deal for them as this is what drives traffic to their site; people looking for a bargain. They really don’t care if YOU make a profit or go out of business as they get to move on … YOU don’t
To really drive deals many merchants advertise. The cost of advertisements is a factor which needs to be factored in. Offers without promotion are often not so successful, so analyze the techniques practiced by competitors for sensible ROIs.
How to buy deals software from a reputed store?
Well, once you’ve analyzed and planned each and every detail about the deal business, the next step would be to go for the best deals software available in the market.
“Why would you post on a daily deal site and pay huge commissions on a deal screwed to the bone, when you could run your own deals on Bogof.”
By leveraging the of expertise in Bogof development, features, benefits, great customer support, high quality, great customization facility, etc. and by partnering with Chartered Accountants you’ll enjoy the best deal software from a top-notch company.
I hope the information provided in this article is useful and helped you in the process of setting up deal business and making it successful.