The proliferation of daily deal sites is continuing in Charlotte, with the newest entry, CharlotteConnoisseur.com, going live today.
Daily deal sites (if you've somehow avoided being bombarded by news about them), have exploded in popularity, with hundreds popping up in the wake of industry leader Groupon's 2008 launch.
The business model is pretty simple: Sites sign up users and merchants, getting merchants to offer their goods or services for 50% off or more. They email those offers to their users, who buy coupons for those radically discounted prices. Merchants and the sites split the revenue, with the theory being that merchants reap the benefits of dozens or hundreds of new customers to offset the discount hit to their bottom line (typically at least 75%, after they split proceeds with the site).
A search for "Daily deals Charlotte" turns up dozens of the sites, ranging from national players such as LivingSocial (which recently expanded its Charlotte sales force) and Half Off Deals to more local names such as Charlotte on the Cheap and Charlotte Access. Local media companies have also jumped on the bandwagon, with the Observer and the Charlotte Business Journal recently starting daily deal offers.
Here's how Charlotte Connoisseur describes itself on its Facebook page: "CharlotteConnoisseur is a team of Charlotte locals, socialites, business owners, fashionistas and critics who love the group coupon craze and want to perfect the model on a local level. We vote on the best local businesses and only offer deals from the ones who make our cut."
Many observers have raised questions about the long-term viability of such sites, and some merchants have complained that the sites cost too much and train customers never to expect to pay full price. Groupon's IPO, one of the most-anticipated, has drawn plenty of fire, such as this article, "Groupon IPO has gall." The story essentially points out that Groupon has lost $540 million since its inception and doesn't predict when it might turn a profit.
What do you think - will the sites succeed? Have you used any? What was your experience like?