I have to admit that when the concept of group-buying to achieve unbelievable discounts came to the UK, that I initially felt concern for our own USP - that of providing discount partners for sales promotion and loyalty. But, on closer scrutiny, I realised that the short term and ultra-localised nature of most of the offers would not represent any real threat to our business.

But you could perhaps forgive me for indulging in a certain amount of schadenfreude when the wider world, including the BBC no less, wake up to the fact that the business model employed by the likes of Groupon, KGB Deals etc is grossly unfair on the merchants providing the discounts. 

Now it would be foolish to criticise the concept as a whole. I myself enjoyed an unbelievably cheap two course meal for four a few weeks ago in a venue (and a part of town for that matter) that I would have never ventured into unwittingly. And the chances are, I probably never will again. Not by any failing on the part of the restaurant but purely because there is always another deal to try. And therein lies the problem. If merchants are providing a higher than 50% discount this is an almighty loss-leader if they don't receive any (full-paying) repeat business or are unable to up-sell them on any additional services. In this scenario the promised deluge of new customers can soon turn from a dream into a costly nightmare.

This approach is completely against our principles at Mosaic effectively leaching the lifeblood of your own business. For Mosaic the welfare and success of our partner's business is paramount and fundamental to our mutual survival. We strive to protect the brand interest and objectives of our partners every bit as much as our clients. Mosaic is in it for the long haul in all our relationships. Without a willing, enthusiastic and trusting database of partners we wouldn't survive.

Our advice to anyone embarking on a Daily Deals campaign is be careful. As experts in third party marketing, here is our advice on how to protect your business:

1. Think long and hard about whether this option is right for you. If you're a new business it's tempting to get as many customers through the door as possible. But there are good customers and bad customers. Bargain-hunters who are out to just enjoy the deal and not buy any extras will cost you more than not having a client at all. 
2. Don't be pressurised into offering more than you can reasonably afford - ideally structure the deal so that you at least break even
3. Remember to brief staff for the inevitable flood of bookings at all steps in the process. If you're a face to face service business ensure that everyone raises their game: friendly manner, product knowledge, attentitiveness
4. Up-sell sell sell - but don't be pushy. It's a fine line I know.
5. Consider talking to a third party promotions specialist like Mosaic. We can partner you with some of the UK's leading brands reaching customer bases of millions at no cost.