Its solid-fuel rocket motor was prepared from nitrocellulose. He reached for the nearest cloth, a cotton apron, and wiped it up. He hung the apron on the stove door to dry, and as soon as it was dry, a flash occurred as the apron ignited. His preparation method was the first to be widely imitated—one part of fine cotton wool to be immersed in 15 parts of an equal blend of sulfuric and nitric acids.
History[ edit ] The deal-of-the-day concept gained popularity with the launching of Woot. By latethe deal-of-the-day industry had greatly expanded to over deal-a-day sites. In NovemberGroupon entered the market and became the second fastest online company to reach a billion-dollar valuation.
However, the rise of social networks, such as Facebook and Myspace, has accelerated the growth of daily deals sites, allowing popular deals to spread virally. Business model overview[ edit ] The deal-of-the-day business model works by allowing retailers to market discounted services or products directly to the customers of the deal company, who receives a portion of the retailer's profit.
This allows retailers to build brand loyalty and quickly sell surplus inventory. The majority of deal-of-the-day sites work directly with local businesses and online retailers to develop deals significantly discounted compared to recommended retail prices.
Using a group buying formula, a minimum and maximum number of deals are made available. Typically, deal of the day sites segment merchandise by specific designer sales.
Descriptions of the deals are often emailed to customers when the deal goes live, sometimes with creative or humorous descriptions. The practice of sending these emails has been criticized  by e-mail marketing professionals and users.
However, evidence suggests this aggressive strategy is effective at generating sales. Customers purchase the deal on the deal-of-the-day website, rather than directly from the retailer.
The websites then retain the customer data, rather than the retailer. Once the minimum number of deals have been sold, customers' credit cards are charged, and the deal is delivered as an electronic voucher redeemable at the retailer or service provider's location.
The promotional value of the vouchers purchased from deal-of-the-day websites typically expire after a certain period but maintain the original value paid.
Common products and services sold through deal-of-the-day websites include apparel, restaurants and bars, salons and spas, special events, health and fitness products, and travel packages.
Marketing[ edit ] Most businesses which run contracts with daily deal websites consider doing so as a marketing activity rather than a direct means of generating profit. Between the deep discount offered as part of the deal and the payout to the deal-of-the-day site, the businesses may net little or no profit effectively making the deals loss leaders.
There is evidence that these businesses gain significant increases in overall sales due to the amount of exposure gained from running a one-day deal. Many customers who purchase daily deals are "price-sensitive deal-seekers" who are unlikely to return to the business in the future without similar discounts.
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