I have been enjoying a group buying lifestyle for a while. It is not just about the discount I got from the deals; it is also an opportunity for me to explore what good things life has to offer, which I would not have discovered if those group buying sites did not exist, especially in a new city that I just settled in. However, as this new business model is booming, you need to be careful. Like when you walk into a shopping mall, you find a lot of signs indicating a sales in store. You may not believe it until you work out the actual price and estimate whether the price is below the amount the product is normally sold for. Similarly, don’t just look at how much the deal claims that you are going to save. Go back to the original website of the product/service, and compare the prices. If you are worrying they can even change the “original price” on their website, do a search of have a look at the similar products/services and find out their prices. Then you will have a better idea whether you will buy the advertised product/service at the advertised price, no matter it is a discounted price or a normal price. It is the price you are going to pay! Have a look at the following example: LivingSocial is advertising a getaway dealwhere they claim the original price is $414 and they are offering a deal for $195 only.
However, when I went to the official website of La Maison Boutique Hotel and navigated to the tariff, I found that the original price for a two night mid week stay in a Deluxe Queen room is not $414. Instead, it should be $220 ($110 per night).
OK, with LivingSocial, you pay $195 instead of $220 for the same services. Is there any discount? Yes, it sounds good. But, you will not think this is a great deal with a huge discount.
If you think you are getting a great deal because the original price is $414 and you have got 53% savings, then YOU ARE GETTING RIPPED OFF!
So, what is the strategy you should consider to use? Look at the advertised price but don’t look at the so-called original price, read the details of the deal, close your eyes, and think if you should buy the service/produce for the advertised price. If you decide to buy it, go ahead; if not, close the website, but don’t look at the original price and try to convince yourself you should buy it because you are getting a great discount! Otherwise, you are actually getting ripped off! Good luck!