Let’s Make a Deal

I recently read an article being circulated amongst the massage therapy community regarding the ills of deal running. Deal sites have seen a boom in popularity since the economy went south back in 2008. Some are more popular than others (think of LivingSocial, Groupon and Gilt.com) but search the world wide web and you will find a myriad of deal sites for just about anything.

Here a DEAL, there a DEAL, everywhere a DEAL, DEAL!!

If you are searching for a new coat, have a craving for a fancy dinner out or want to book your all inclusive trip to Morocco, you can find a deal online at sometimes 50% or more off the original price. After the deal site pockets a certain percentage of the sales of the deal, the business running it will receive a FAT check in advance. This sense of immediate wealth is offset by the wait for the clientele to actually redeem their deals. This is more true of service industries like restaurants and spas; not so much for products or travel. Deal or no deal, the business still has the same overhead – employee wages, supply orders and stocking, the rent to pay, etc. There will be days when the books fill up with the discounted clients leaving little room for the regulars and full price paying walk-ins. Suddenly, that FAT check is looking a little lean. What seems to be good for the bottom line in the short term, actually costs the business a lot more than they bargained for.

Once the deal is redeemed, the business’s hope is that they will make you into a regular full price paying client. Unfortunately, there are many conflicting statistics regarding client retention after deal purchases and for a number of reasons. The bulk just wait for the next deal to come along. The long term affects of constant deal running can be disastrous to a business’s reputation. I once overheard a conversation on the subway between two men who had purchased a restaurant deal off one of these sites. One of the men said, “Oh, that place is always running deals…like every month.” In response, the other man laughed and said, “I bet they’re in trouble.” Public perception of a business that is always discounting is that the business is going under or that the services are going to be sub-par. An example of the latter happened to a friend of mine who redeemed a deal on a deluxe manicure/pedicure at a popular Manhattan nail salon chain. Despite the place not being crowded, my friend waited for almost 45 minutes to receive her treatment. It seemed to her that the staff was trying to decide amongst themselves which one would be taking her appointment. The technician who finally performed her treatment reminded her throughout the hour and a half together that she should tip on the original price. She was not offered any of the treats and beverages other clients were enjoying and she also noticed that her technician skimped on a couple of the aspects of her treatment. Not only was my friend disappointed with her entire experience, but also felt that if she were a full price paying client she would have been treated differently. There is some truth to the adage, “You get what you pay for.”

In an effort to boost their already bruised bottom line, many establishments will not pay “commission before discount” to their employees. This means that the employee gets paid less for the same amount of work. In other cases, the employee will be paid a flat rate for a treatment package that requires more work. There is, of course, no excuse for poor customer service and short-cutting; however I can relate to the feeling of having one’s skills undervalued. Sometimes, when every single one of your clients in a day is a deal, it’s hard to be so tired for what amounts to around $8-10 per working hour. It’s also hard to accept what is NOT a living wage and also not reflective of the level of education and skills brought to the table. Let’s not even mention how physically demanding the work can be. The more deals offered the more undermined and wrung dry the therapists and technicians will feel. It’s a never ending cycle of not being able to catch up, both financially and physically. And at the end of day, the overall bottom line can’t do so either.

Now, before you as the potential consumer/client start to feel guilty for shopping a deal, please understand that this whole diatribe is meant to inform your purchasing decision; not deter you from it. Deals are a great way to discover new places to patronize, try treatments that otherwise you never would have tried and also gift to someone special without breaking the bank. Just heed the following: Pay attention to how much off the original price the deal is. The higher the percentage, the more you can guarantee some of what I described above occurring. Also, look up the reviews for the place running the deal. Do they have good client retention? Are the experiences for deal redeemers positive? This is how you can ensure you will get the right treatment and a deal worth paying for.