One thing that I’ve learned from Living Social and Groupon is that my wife shouldn’t pay more than $99 for laser hair removal. Typically, it costs $600-$800 per area. However, I usually see a $99 deal once or twice a month. So we never expect to pay more than $99 as long as Groupon is still in business. For us, the value of laser hair removal has been permanently reduced.

The same problem occurs for a lot of businesses. Being featured at 50% off teaches customers that the reduced price is what they should expect to pay. I think that’s one reason you see the same companies offering deals month after month. They have to because that’s what consumers now expect to pay.