Photo by Funkdooby
The following guest post is from Marina of Matryoshka Nesting Dolls:
Like many budget conscious shoppers, I have learned to appreciate the value of coupons and how much it can save me. Back in the day, when the economy seemed so much friendlier, money not as difficult to come by and finances not as tight, I would opt not to go through the “hassle” of clipping coupons, planning or timing their purchases in order to accommodate these discounts, or mail in coupons for rebates. However, once I gave it a try and saw how it made a difference in my budget, I decided to make more of an effort in order to maximize my hard-earned dollar.
Introducing Group Coupons
In the past few two to three years, a new form of coupons has slowly invaded the market: group coupons. The principle is basically the same, I would surmise: get something for less with the use of a coupon. The difference of these coupons, perhaps, is that instead of clipping it out from a newspaper or printing out those printable-versions of such, you purchase these coupons online but pay much, much less for what you are buying. More so, these coupons can be used for luxury deals and packages, such as hotel accommodations, vacation packages and spa services.
What’s the catch to group coupons? Well, as the name implies, it requires a certain number of people to buy the deal so it will push through; if not, nobody gets to enjoy the deal. As such, customers are encouraged to invite their friends to also purchase the deal.
Pros & Cons
Like anything else in life, there are pros and cons to group coupons. Let’s look at the upside: you save a whole lot. The downside: you spend a whole lot! Haha.
Seriously though, sometimes the deals being offered, albeit too good to pass up, can actually cost you more because you end up impulsively buying things you don’t really need (or at times, want) but because it’s so cheap, you give in. It is important to remember that at the end of the day spending on these deals is still money out of your pocket, even if it is a great bargain. For example, if you buy three different vacation coupons from group sites and then end up not being able to use them because you can’t get out of work, that’s money down the drain. Another example is getting such a huge discount for a spa deal, but the spa ends up being a two hour drive away from you. Factor in your transportation cost plus time needed to actually use the coupon, you may be on the losing end of the deal after all is said and done.
I have tried group coupons a couple of times and so far, I’ve had pretty smooth transactions with the various sites I have tried. However, not all transactions have turned out very well for others, especially for the lesser known and established sites. To be fair to the group coupon companies, often times (at least from what I have read in social media sites and the like) stem from lack of communication and awareness of the cashiers at the end merchant’s site. These concerns, however, seem to have been resolved amicably.
Further, because of the popularity of group coupons nowadays, there are times when the merchant is unable to keep up with the demands of the public, therefore, stocks run out or they are unable to immediately accommodate the needs of the client. For example, I know of one lady who purchased a hair-treatment deal, but when she got to the salon, they had run out of the solution necessary for the treatment, and so she was asked to come back on another day. Then again, she did fail to set an appointment, so I suppose that can partly be attributed to her, right? That leads to another common problem that arises from the use of group coupons: failure to read through the fine print.
Evaluating the Benefit
Given such, the question that begs to be asked at this point in time is: are group coupons worth it and do they actually save us money? The answer to that for the most part is yes, these group coupons offer such great deals that range from 20-90% off of the regular price. However, because these deals are often too good to resist, there is the temptation to spend a little too much. Let’s remember, after all, these group coupon deals lean more on the luxury side rather than on necessities. As for me, when I am tempted by a group coupon deal, here are three things I keep in mind before clicking that “buy now” button:
1. Is this worth my time and effort? Meaning, how much do I have to give up, effort wise, in order to enjoy this deal? Do I have to take time off from work or hire a baby sitter to take care of my kids while I’m away enjoying this deal? If so, how much will I be actually spending versus saving?
2. Am I going to be able to use this? The problem (at least on my end) with group coupons is that it taps into my impulsive buyer side. Therefore I have to take pause and think about it before actually clicking.
3. Does this actually save me money? Remember: luxuries will always remain that, a luxury. Therefore no matter how cheap it may seem, it may not be a savings for me after all. For example, if you purchase a coupon for a Japanese restaurant but you actually don’t enjoy Japanese food, does it save you money?
Editor’s Note: If you’d like to check out what kind of deals are available in your area, here are some of my favorite sites:
Happy couponing!
Marina Chernyak is SAHM and co-owner of Matryoshka Nesting Dolls.
Sarah
I have been really happy with Groupon. If you don’t use it by the expiration date, or if you are unhappy with it for any reason before you use it (i.e. you find out you can’t use the Old Navy Groupon with one of their super deals), they refund the money into your account. You can use it for another coupon later.