[vimeo vimeo.com/13941347 w=542]
Hey DealDashers!
Hope you enjoyed the video! Thanks for watching.
Transparency has always been one of our core values here at DealDash.
With such a unique concept like ours, it´s very important for us to be fully transparent about everything we do.
So we´ve decided to lay all the cards on the table and tell you what it´s really like to run a company like DealDash.
This post is a little longer than usual, bear with me though, you might just get some great strategy out of it!
On a daily basis we run into people who ask questions like “how much money do you make per deal?” and “what´s the average return on a sale?”.
Well, we thought that it´s about time that we´de share the answers to these and other questions with you and the community.
Like many of you know, here at DealDash we simply love data. 🙂 Let´s take a look at last month (July´s) figures:
Out of almost 4,000 deals sold in July:
– 55% of deals got sold during the first 10 minutes
– 77% of deals got sold before they hit $1.00
– 8.8% of deals got sold for only 1 to 2 bids placed! (That´s almost one in ten deals that get sold during the first 2 bids placed!)
– More than 100 deals were sold at only 1 bid placed!
– Our gross margins (the cash we keep between buying the products and selling them to you) were less than 25%. That´s before paying all the other bills.
So for every $100 we took in through sales, around $80 was used to simply buy the brand new products we have on the site.
Because we get to buy the products a little cheaper than what an average shopper could
(typically about 5-10% less than what they retail for at major stores), by the end of the day, you actually end up paying only
a little bit more than what you would if you would go and buy the same products from one of the giant retail corporations like Amazon or Walmart.
That´s taking into account all the money spent buying bid credits without winning, so with an average strategy you end up paying just
a little bit more than what you would if you would do normal, mundane shopping. Let me ask you a question, what´s more fun;
A) Browsing through a static, online catalog at a major retail corporations website and buying the product you are looking for.
or
B) Finding a product you love and competing for it in an exciting DealBattle with other shoppers to see who gets the best deal, possibly winning it for 96.8% off?
Sure, somebody else will win the deal sometimes. But even taking that into account, an average DealDasher only pays a
few bucks more for every $100 worth of products they buy from DealDash. With just a slightly better strategy than the average bidder,
you´ll be able to consistently score great deals while having the time of your life on the site!
There´s a lot of work that goes into running the site, our small team of tech entrepreneurs work around the clock to ensure
a safe and smooth web environment. We work with our suppliers to make sure products are delivered on time, we handle
technical issues, answer thousands and thousands of emails (coming from your’s truly Dave;), ship thousands of products
through our supplier network, pay salaries and office rent, not to mention the almost $10,000 bill every month just for operating the network of servers that run the site!
The money that is left by the end of the day is usually spent on trying to build more buzz for what we do (some people call it marketing) and develop cool new features.
We do the very best job we can with the goal of providing the most engaging competitive social shopping experience on the planet.
It does seem that our approach is working quite well, during the last few months alone, our userbase has grown to more than 110,000 users.
All based in the US. That´s 0.06% of the US online adult population. (We hope to hit 6% soon 😉 Unlike many of our competitors we haven´t
spent a lot of money on marketing, most likely you heard about us from a friend. You vote with your dollars where you chose to spend your
money and as long as we do a kick-ass job, we´re sure we´ll see you back tomorrow!
We´ve been around for a while, in fact we started working on the site already during the first few months of 2008, we had our launch in February 2009
and since then we´ve been constantly evolving. If you´re reading this, you´ve probably been with us for at least a few months.
By now you´ve probably won a few super deals on the site and perhaps you´ve lost a deal or two as well.
So where do we see the future going?
-Who knows, all we know is that we´ll continue to do what we know best, and provide you with the most engaging competitive social shopping experience on the planet.
Our vision is very big at DealDash and we´re pretty certain that we´re playing a part of changing the world and the way we shop online.
Have a great weekend!
Dave & the team
P.S.
Be part of the community and follow us on Twitter! (Click here)