´óÏó´«Ã½

Group-discount websites have been in the news this week with the US site and market leader Groupon launching a roadshow to attract new investors. In the last two years there has been a surge in collective buying websites, which offer consumers large savings on anything from haircuts and massages to MOTs and cleaners.

Group-buying works by sites agreeing with a retailer to sell a large number of their products at a discount - meaning the seller has a broader client base, while the buyer saves money. As such sites are now getting millions of hits a day, being featured on them is seen as a great advertising opportunity for small businesses.

But as a ´óÏó´«Ã½ News report demonstrated, retailers can feel cheated because money-saving clients tend not to be brand-loyal. For example, if I buy a cheap haircut on a discount site, rather than head back to the same hairdresser, I'll go back to the discount site and see what other salons are offering good deals.

Collective buying is the cheap thrill of the consumer world. Often the sites tell you to consider buying things you wouldn't ordinarily get, yet still leave you feeling like you've made a saving. Deals tend to run for 24 hours, forcing users to make quick decisions. If you're after a treat or in fact wanted a certain item anyway, the sites can be a great way of saving money, but it's important to look into exactly what you're getting for your cash.

On one group-buying site, I paid about £15 for an evening at a London club that promised cocktails, a three course meal and a neck and shoulder massage. It felt like a no-brainer, until I turned up, only to be herded from room to room with the other clients like cattle, sitting through embarrassingly poor entertainment and waiting three hours to be served cold food. The cocktail was watered down and the neck and shoulder massages only made it to a quarter of the room, where suited city men ogled a young woman as she pouted and hair-flicked her way through a three minute massage, collecting her tip at the end. The voucher was cheap and so was the experience.

What I failed to do was find out exactly what I was getting for my money. For £15 it's easy to think you can't go wrong, but an evening in front of Masterchef with a bottle of wine would have been a far better use of my time.

However, as an online discount addict, I've had mostly great experiences. Massages and meal vouchers are definitely things to keep an eye out for, but not if you wouldn't ordinarily purchase them.

Things to remember when buying from a discount site:

• DO read all the small print. If a salon is open at the evenings and weekends, check that the voucher is also valid at those times. Some businesses set aside windows for people with vouchers, so don't get caught out with a discount you don't have the time to use.
• DO shop around. Just because something is on a discount site, it doesn't necessarily mean you won't find it cheaper elsewhere.
• DON'T settle for a shoddy experience. Just because something is cheap, it doesn't mean you should put up with a bad product or service. Make sure you complain and negotiate a refund.
• DON'T think you're stuck with a deal. There is a 7 day cooling off period, so if you're not sure about a purchase, contact the discount site and get a refund.
• DO read the ´óÏó´«Ã½ WebWise guide to buying online.

Read the ´óÏó´«Ã½ News report on group-buying.
Get consumer guides and advice from Watchdog.