Just recently 1-day deals shut down. 1-day offered 3 deals over a 24 hour period to the entire country. They shut down because 'because the company doesn't see vouchers as a viable long term business model for both the 1-day business and for the suppliers/vendors.' -- Vooxy.co.nz
If you watch tv in New Zealand you would have surely heard the annoying Yazoom ads. Five years ago there were a few sites like these around but no one went to them. Now they have to advertise to get people to come. And you can see why. Yazoom has the worst sites design out of all of them and the most annoying ads as well. While the deals may be awesome and 'life changing' for others, being a 13 year and going on these sites only to find offers about laser hair removal and wine boxes and tastings isn't very exciting.
In fact I can't think of much worse than 5 billion emails clogging up my inbox every day on to show me deals I don't want. In the long run the businesses that give them selves up to these deals companies are hit hard.
The deal companies say it is a great way to drive traffic to your business, and it is. But sometimes it can be a disaster and there are far to many people coming in the door and not enough tables, chairs, food, plates. Some businesses just aren't prepared for some many people.
I also doubt the profit that these businesses make, a 65% saving is huge and that might be eating into their profits hurting the financial stability of the business.
Of course there are good things about Daily Deal Websites like for instance 70% savings on products and services. I just don't thing New Zealand has the population to keep 24 websites going with full time employees.
Sources:
http://www.voxy.co.nz/business/leading-daily-deal-site-closes-its-voucher-business/1861/92466
http://www.onedaydeals.co.nz/daily-deal-site-rankings-nz.html
