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The Rise of the $1 Daily Deal

Kiwis truly love a bargain. This fact alone has been a major factor in the mainstream uptake of daily deal sites in New Zealand. First it was hard goods and brand name products from site like DealaDay and 1Day.

Now it’s intangible goods and experiences thru the multitude of group buying sites offering vouchers on things to eat, see and do.

But what is the one major factor that is bringing daily deal sites to the mainstream? It’s the rise of the $1 deal.

The first major $1 deal was run by Groupy in late 2010. It was a $1 HELL Pizza, and they sold over 15,000 in a matter of hours. What made this deal so successful was the viral aspect of it. This was the first time such a deal had even been comtemplated online.

The success was a result of a premium product matched with an unbelievable price. Hell Pizzas go for around the $17.50 mark, so to snap one up for a dollar was the ultimate bargain – and everybody knew it.

$1 hell pizzas

It was a while before we saw another $1 deal pop up. This time it was new site Spreets with $1 Dunkin Donuts in Feb 2011. Again, a well known product paired with an unbeatable price, meant that over 12,000 units flew off the shelves.

But the most successful $1 deal to date came with the launch of TreatMe.co.nz. $1 Burgers from Burger Fuel (normally up to $14.90 each) meant that 20,037 sold in just under 8 hours. That was up to a 95% saving. Also on the same day 15,000 Wholly bagels were sold on the Wellington launch of TreatMe.

Sales Records -  $1 Daily Deals in New Zealand

Number sold

















Deal Offered

$1 burgers from TreatMe

$1 burgers from Oporto thru Spreets

$1 pizzas from Hell thru Groupy

$1 bagels from TreatMe

$1 donuts from Dunkin Donuts thru Spreets

$1 Coffee or Gelato thru Yazoom

$1 burgers from Nandos thru Spreets

$1 GrabOne T-shirts

$1 Icecreams frm Wendy's thru Spreets

$1 Burgers from Velvet Burger thru Spreets

$1 coffee from Frescos Cafe thru GrabOne

$1 Gelato from Yazoom

$1 coffees from Yazoom

$1 coffees from Cafe Express thru GrabOne

$1 Drinks at Backyard Bar thru Spreets

$1 Hell Pizza thru RuralTrader

While more and more people are discovering the benefits of all these deal sites, there is a hardcore following that religiously check sites each day for that true GEM of a deal. That gem is the $1 deal.

But $1 deals are rare. Economically they can only come along once in a blue moon. $1 deals are by definition, “loss leaders”. This means that at $1, the company offering the deal will be losing money on

But in most cases it’s the daily deals site who foots the bill. When TreatMe launched with their $1 burgers they reportedly paid Burger Fuel $6.50 for each $1 burger voucher, meaning that Burger Fuel didn’t lose money on the deal. At 20,000 units it cost TreatMe $130,000 dollars to do that deal. Talk about a nice present for 20,000 new users!

1 dollar burgers

And its not just voucher deals going for $1 dollar. Recently GrabOneTee offered $1 GrabOne T-shirts. 5,000 were sold with free shipping, but this deal could have almost entirely be written off as a marketing exercise. The t-shirts were advertising GrabOne so were in effect company shirts. Still, I wish I had one. GrabOne has been such a NZ success story.

There is of course a website dedicated solely to $1 deals. OneDollar.co.nz offers a $1 deal each day. However the products are usually generic type products. Nonetheless they are $1 each. Just check the shipping cost.

All these $1 Deals really put the spotlight on the group buying market in New Zealand. Everyday, new people are joining deals sites on the back of these headline grabbing deals. The site offering the $1 deal always gets a massive influx of members overnight. It’s a great way to  build your database.

But more importantly, $1 daily deals are the best way to get new users to actually make a transaction. Its about breaking the familiarity barrier. Once you’ve used a website, you are likely to return. And this time, spend more that $1!

OneDayDeals.co.nz – Your source for whats happening in the Daily deals market.


Are there any $1 deals on today?

$1 Deals on today?


Posted: Thu 12 May 2011


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