There are a couple disparate pieces to their earning puzzle that don't quite add up to me :
1. Many here seem to feel that taking 50% is unfair to their merchant partners. Yet, they are nonetheless struggling to turn a profit
2. Like any other coupon, LS deals run the risk of un-use. Speaking for myself, I have forgotten about at least 4 separate deals, and am not an active "daily deals" consumer.
How can LS ever be profitable? It feels like they are already absorbing as much net revenue as they can, and have the deck as reasonably stacked as possible. Is it a question of needing to run leaner (they do spend hand over fist, in my experience)?
By growing and getting into new markets you can stay ahead of the curve. But once you hit saturation, its going to catch up with you. On top of that there is fatigue for this model all together.
1. Many here seem to feel that taking 50% is unfair to their merchant partners. Yet, they are nonetheless struggling to turn a profit
2. Like any other coupon, LS deals run the risk of un-use. Speaking for myself, I have forgotten about at least 4 separate deals, and am not an active "daily deals" consumer.
How can LS ever be profitable? It feels like they are already absorbing as much net revenue as they can, and have the deck as reasonably stacked as possible. Is it a question of needing to run leaner (they do spend hand over fist, in my experience)?