The impact of "Deal of the Day" offers on retail & consumer products companies
R&C companies that transact business via on-line Deal Coupons should bear in mind potential accounting, tax, and business considerations. Deal-of-the-day companies ("Deal Companies") offer daily deals to the general public. The "deals" offered by these companies are generally in the form of on-line coupons ("Deal Coupons"), providing discounts at local and nationwide businesses.
The Deal Coupon industry has grown significantly in recent years. US consumer spending on Deal Coupons is forecasted to increase from $873 Million in 2010 to $3.9 billion by 2015. Given the increased popularity of on-line deal offers and use of mobile devices, for many R&C companies, on-line Deal Coupons have become a popular marketing tool to attract consumers and sell goods and services. This article highlights some of the related potential accounting, tax and business considerations for R&C companies that transact business via Deal Companies.