We all like a good bargain. We would buy something (not necessarily because we need it) because it is a “great” deal. It does make sense when you can inspect the item and know how much it would cost you, like when you are buying an actual item in the store.
When you buy something online, do you really get a great bargain? When it is an inexpensive item it is no big deal. Like when I purchased a $40.00 doll house for my daughter on Groupon and it wasn’t until it was 90% complete when I discovered the flaw in design (the indentation for the wall was in the wrong place, so I could not put the wall in). Luckily I was able to adjust and keep it (since I did not want to unscrew every single piece, package it and send it back to the manufacturer). But when it comes to a high price item, it is a different story. Do you really know how much it will cost you in the end?
Here is an example: a great deal on Living Social for limousine service in Greensboro. We covered the company’s information for confidentiality reasons. Let’s say it was not us.
$249 for 14 people for 5 hour winery tour! A $500 value.
Seems like a great deal! But is it really? Let’s read the fine print
- 90 days from the moment of purchase
- Subject to service area.
- Did you check whether you are in the service area?
- Distance restrictions apply
- Before you can decide which wineries to visit, you better make sure they are in the “allowed” distance
- Subject to availability
- You have to work with the company’s schedule, not yours. Considering spring it a very busy prom and wedding season, you will be hard pressed to find a desired date on the shot 90 day notice.
- Additional fees apply for fuel charges
- You are going to be charged, but there is no mention of the amount. Is there a min/max amount or will you be charged per miles travelled.
- Tax and gratuity not included
- Industry standard gratuity is 20%, which you will be charged on the full value of the package ($500.00). 20% of $500 is $100.00
- There is no mentioning of which vehicle are you getting. You might be getting this limo
- Other conditions apply
- This may imply anything
Let’s sum it up:
- You don’t know how much it will cost you in the end since so many fees are mentioned but not specified.
- You don’t know which vehicle you are getting
- You don’t know if you can go on the days you prefer
Doesn’t seem like a “great” deal now, does it?
Here is a little insider info: Living Social as well as Groupon keeps 50%of the purchase price. So the vendor (in this case a limousine company) only gets $114.50 for each trip sold. That does not even cover the gas for 5 hours of limousine service; not to mention the payment to the driver, the proper insurance on the vehicle and the wear/tear of the vehicle. This isn’t a non-for-profit limousine company, so it does need to make money on limousine rentals. So this company tries to creatively market to the customers: start with a low price and add costs one at a time.
We have been approached by both the Living Social and the Groupon but decided not to advertise.