Survey Says: America Still Loves a Bargain

More entrepreneurs are turning to online contract workers and budget travel as a way to cut costs, while online coupons continue to convince shoppers to spend more.

By Rieva Lesonsky

Posted 7/ 8 10 at 1:30 PM | Business Trends, Money, Sales, Leadership, Business Travel, Online Business, Human Resources, Retail, Travel

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Brother, can you spare a dime? More entrepreneurs are looking to cut costs on hiring and business travel.

Small-business owners apparently are hooked on the benefits of hiring online freelancers instead of on-site employees. And luring consumers with online coupons can make the difference in whether they buy or not. Finally, business travelers are hitting the road again, but they are still watching their dollars when they go. Here's a closer look at some of the latest small-business surveys.

Business Owners "Hiring" -- Sort of

The majority (64 percent) of small-business owners prefer hiring online independent contractors instead of full-time, on-site employees, reports the Elance Employer Online Hiring Practices survey.

According to the survey, 86 percent of entrepreneurs have hired online contract workers in the last 12 months, compared to just 32 percent who had hired on-site employees in the same time period. Why do entrepreneurs prefer contract workers? Eighty-seven percent like the fact that it cuts costs, enhancing their competitiveness and profitability, while 82 percent like the flexibility it gives them to staff up or down on a dime.

Those are certainly compelling factors, and I can see why hiring online contractors is an attractive option and not just a temporary reaction to a still struggling economy: Even when the economy improves, 64 percent of business owners say they will continue to rely on a "distributed workforce." But if this is indeed the way of the future, we're going to have to get used to a high unemployment rate. And someone needs to come up with an affordable way for all these contractors to buy health insurance.

Coupons Pay Off for Retailers

Turns out coupons can make or break the sale -- especially online. More than 50 percent of consumers who used a coupon code when making their last online purchase say they wouldn't have bought the item(s) without the discount, according to the latest Online Shopper Intelligence survey from Compete.

The number of online coupon users is growing, to 35 million in April 2010, up 5 percent from the same time last year. One-third of online shoppers say they typically use coupon sites when shopping online. And don't assume these are small spenders. Consumers who used coupons spent almost twice as much as those who didn't -- an average of $216 for coupon users, compared to $122 for those without coupons. As an avid online shopper (and coupon user), I'm not surprised that the lack of coupons is often a deal breaker, but even I am startled by how much more money coupon users spent!

Business Travelers Still Deal-Conscious

Online shoppers aren't the only ones looking to save money. While more Americans plan to travel more on business than they did last year, they're on the lookout for deals, according to Embassy Suites Hotels' second annual nationwide Business Travel Survey.

More than 70 percent say the recession has forced them to change their business-travel habits. So how are business travelers saving money?

Flying only coach (29 percent)
Cutting back on meals and other expenses (27 percent)
Sharing a room with a co-worker (17 percent)

When choosing a hotel, price surprisingly is a secondary factor, with 27 percent citing it as their most important consideration. Taking first place -- "proximity to business meetings" at 29 percent.

Demographics play a role as well. More men (29 percent) than women (16 percent) prefer to fly first class and stay in five-star hotels (29 percent versus 16 percent). And young travelers (ages 21-34) are far more likely to visit Facebook before they make a business travel decision.

As a small-business owner, I can relate to looking for value when I travel. In these past few years I've flown bargain airlines, cashed in hotel points and even bunked with family members, all in the name of thrift.

Rieva Lesonsky is CEO of GrowBiz Media, a content and consulting company that helps entrepreneurs start and grow their businesses. Follow Rieva at Twitter.com/Rieva and visit SmallBizDaily.com to sign up for her free TrendCast reports.

Tags: business travel, Business Trends, contract workers, free online coupons, hiring, hiring contract workers, how to save on business travel, HR, online coupons, Rieva Lesonsky, Survey Says

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Comments (Page 1 of 1)

Greg 7-09-2010 3:01PM

I am a fan of the online shopping rebate sites. I belong to one that pays well. I just bought 2 remanufactured inkjet cartridges, a black one for my wife's printer, and a color cartridge for mine. In the retail stores, the new ink would have cost approximately $70. I paid just over $25.00 plus $4.99 shipping, and then I received a $5.14 rebate from my membership site. Listen folks - The online retailers are paying for advertising and referrals, and one way is by giving rebates through these membership sites. They work (if you buy things online). I LOVE getting a deposit in my Paypal account every month just because I bought something that I needed to buy anyway. I shop for the best price, and then get a rebate on top of that! http://bit.ly/9hz0Ga

EDZO 7-12-2010 6:59AM

FUNNY....I THOUGHT THIS WAS ABOUT THE WORSE PLACE TO WORK FOR. A PLACE THAT TREAT IT'S PEOPLE LIKE TRASH. CHRISTMAS TREE SHOPS. BUT THEY DO TREAT THE CUSTOMERS GREAT. JUST WORK THERE ONLY AS A LAST RESORT.

Larry 7-20-2010 2:08AM

I am an on line merchant. I do not offer discount coupons. I to believe that merchants raise their prices to make up for the loss incurred by the use of coupons. If I were to offer coupons for use on specific merchandise in my on line store, I too would raise the price of that specific merchandise. I can then recoup at least a portion of the revenue lost to the coupon. My customers often enquire about "free" shipping. I don't do free shipping. I try to make my customers understand that there is no such thing as "free" shipping. Somewhere in the transaction you are paying for shipping, or at least the majority portion of the shipping. I sell consumables. Products that the consumer buys over and over again. Think of tooth paste, soap, perfume. They are all consumables. I sell 40 different fragrances. I always have 7 or 8 different fragrances on sale at any given time. The consumer can see 32 or so fragrances at the regular price ($11.95), and there are 7 or 8 priced at $8.95. There is no doubt, nothing for the consumer to be suspicious of. There are no "price games" being played with the use of coupons, free shipping, or any other unverifiable discount. You can see the discount with your eyes, and count the savings on your fingers. 4 bottles @ $8.95 = $12.00 savings. Want free shipping? There it is....$12.00 will buy a fair amount of shipping.

Lara 7-17-2010 8:22AM

The problem with the pervasiveness of online coupons is that it's become apparent retailers are raising the prices to accommodate the use of coupons. So we're not really saving any money, just being duped in to thinking we are.