Are you a fan of coupons? And would you use them, without hesitation, even if you were on a first date? I ask the question because it’s no secret that there has been a bit of a social stigma associated with coupon clipping – especially with the 30 & under crowd.
I’m happy to say those days are o-v-e-r!! Whether it’s by necessity, courtesy of the Great Recession, or the cult like following of up-and-coming ad companies like Groupon – the social stigma around coupons is definitely out the window. It is now cool to be a deal hunter!
Groupon and other similar sites offer daily deals with a focus on local retail goods and services. A minimum number of people must sign up for the offer for it to be valid. On average discounts are 50+ percent.
Sounds like a win-win-win, right? Well, maybe.
At the risk of being a total killjoy and before you completely drink the Kool-Aid of sites like Groupon, I offer this cautionary advice.
Submitting yourself to daily online advertising of on-sale items is a lot like going to the grocery store when you’re hungry; everything on the shelf suddenly looks appealing! If you don’t go in with a solid spending plan, you run a very real risk of over-spending on things you don’t really need. It’s important to remember that the reason businesses put products on sale is to entice consumers to spend more than they otherwise would.
So, are these daily coupons a good deal? That’s the question I encourage you to ask yourself before you click “buy.” When it comes to distinguishing good deals from not-so-good deals, gaining an awareness of the powerful effects of advertising is an important first step. Another way to guard against over-spending is to sit down with your family or friends and think seriously about your needs and wants, your financial goals, your budget and your money values.
This week’s news of Google’s staggering $6B offer to buy Groupon certainly reinforces the notion that 21st century couponing is BIG business!! The enormous success of Groupon and other similar companies is definitely understandable. After all, who doesn’t like to save money?
But if you’re spending money you don’t have just to cash in on the latest offer, that is no deal.
What do you think?