

The Ultimate Daily Deal Site - Why doesn't this exist? - rickmaher
http://www.rickmaher.info/2013/the-ultimate-deal-site-and-bync-will-fail/

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rohamg
im afraid its not this easy. continuing your stock exchange analogy, trading
volume at the individual stock level will be too sparse and unevenly
distributed to make an unassisted exchange workable except at massive
unprecedented scale (which i admit we'll achieve eventually). that's why in
daily deals "stock brokers" exist, they are groupon/LS/etc. and they're still
bleeding cash trying to reach these merchants profitably despite their "high"
gross margins.

also i dont think you've adequately fleshed out the chicken and egg problem;
ie i dont think folks will sit there and load up their deal preferences
without you having demonstrated some kind of value first. demonstrating that
value will be difficult without reverting to industry standard stuff. back to
square one.

most importantly, in daily deals merchants pay for marketing+distribution =
new customers. what you're describing will mean the customers voting on a
merchant will already be aware of that merchant, and this makes your pitch to
them a different (and much more difficult) conversation. from the merchant's
perspective, discounts lower their product's value in their customers' minds.
imho the right way to deal with loyalty is through having a loyalty program
(assisted by the many great startups in this business), not generalized
discounting.

hope this helped.

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rickmaher
I've outlined in some detail a concept I've thought up for a daily deal site
truly unique and better than Groupon, Living Social, and all the copycats
including the most recent - Bync.

I'd love any feedback.

