Groupon is now huge. For those that do not know about it, Groupon.com works like this;
Customers sign up for an email which gives them daily offers.
The offers are from local businesses in your area who have arranged with Groupon to offer a discount. It is popular with all types of business but particularly services like hairdressers, spas, restaurants etc. The business offers a certain number of deals, and if enough customers pay for the deal everyone who has signed up for it gets a voucher. The discounts are really big, usually 50% off or more. Then from what I have read Groupon then charges 50% commission from sales, so in effect businesses are getting only 25% of what they would normally make.
The idea is that these 'loss leaders' will result in repeat business from the voucher holders, but the big question is does it??!! Are the customers just like vultures swooping down for a one off visit at a bargain price, then move on to the next Groupon deal.
There has bee some businesses saying it has been a nightmare, yes it has made them rushed off their feet, but for no profit, and they are to busy with all the Groupon customers to take care of their regulars. This blog will be following Groupon and report any news about it. It is all well and good getting bargains, but surely these should not be to the point where it is threatening the continuation of small companies. Groupon is now valued in the mega millions, but is it another dot com flash in the pan??
http://www.dailymail.co.uk/femail/article-2068373/Cleaned-gambling-Groupon-Few-firms-realise-huge-risks.html
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