Spa coupon deal leads to complaints

AUSTIN (KXAN) - Websites like Groupon and Living Social have become extremely popular in the last year. The sites send out daily discounts to their users for local products and services.

In January, Arboretum-area spa Salon 505 posted a deal on the Living Social site that got a lot of attention. The offer: a half-day spa treatment valued at $550 for just $99.

When Anna Howe saw the deal in an e-mail from Living Social, she jumped at the offer.

"I decided, well, that's as good a deal as I'm going to get," Howe said.

Howe was not alone in thinking that she got a great deal. Living Social sold 5,000 of the spa vouchers in about 22 hours. But that big response was bad news for Salon 505.

Just do the math: 5,000 half-day spa treatments, divided by 365 days and you'd see the salon would have to give nearly 14 half-day treatments every single day for one year to honor all the vouchers. 

Salon 505 owner Sharon Baldeschwiler said the offer was supposed to be capped at 1,300 vouchers.  She blamed Living Social for over-selling the offer.

Baldeschwiler declined our request for an interview. A representative for the salon sent this statement, attributed to the owner:

"I would like to personally recognize all of you who have felt let down by the purchase of the January 21st Living Social Deal.

As many of you know the Living Social deal sold 5000 vouchers in less than 22 hours. Neither Living Social nor myself expected this. The Living Social deal was not capped in a timely manner and was greatly oversold.

The Salon 505 staff and myself have been working very hard to handle the overwhelming number of calls, appointments and services in our most efficient, courteous and professional style. We have honored Living Social vouchers and have been doing packages every day since the deal sold.

Salon 505 the Day Spa has been taking care of our friends here in Austin for the past 33 years. We are a trusted name in our community and are committed to the continued great service and reputation we stand on. I will do everything I can to insure all the good Austin people who wanted this deal are taken care of.

Salon 505 has not received payment from Living Social.

Legal counsel has advised no further comment at this time."

Maire Griffin, communications director for Living Social, said that the company is working with Salon 505 to "do right by everyone who bought a voucher."

Griffin said that Living Social representatives are coming to Austin on Feb. 17 to work on a solution with Salon 505. When an agreement is reached, Griffin said that everyone who purchased a voucher will get an e-mail detailing the solution.

Griffin could not provide a timetable for when an agreement would be reached.

Both Living Social and Salon 505 emphasize that both businesses are working to satisfy customers who bought the deal. But it's going to take some time to make that happen. 

As of Feb.16, Baldeschwiler said that the salon has provided about 120 spa treatments. 

Howe said that when she tried to book her appointment, she was told that the earliest opening was in March, and that no Saturdays were available until July. Howe said the salon also made a modification to the deal.

"The very next Monday, the decided to post something that said they'd require a 15 percent gratuity up-front whenever you book your appointment," Howe said.

She's resigned to waiting months for her treatment. 

"I think everyone went in with the best intentions," Howe said.  "However, really a lot of the deals that are great, aren't such deals after all if you take into account the time and the energy you have to focus on getting the deal accomplished."

There may be a larger lesson to take from this story.

The Better Business Bureau emphasizes that it's always important for consumers to thoroughly research the company that is offering the product or service on websites like Living Social.

"That's who you're really dealing with at the end of the day," said Lydia Hekman of the Austin BBB.  "The coupon site is providing you with the service, but they are not the actual product or service you are buying so it's really important to do that research ahead of time."