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Groupon Responds: Too much of a good thing?

groublogpon.com

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Re: Groupon Responds: Too much of a good thing?

#5

Haha. It's impossible to hate on Groupon when Andrew Mason writes so well and so sincerely. Good luck haters. That's a good blog response.

I think it is horrible. It shifts blame entirely onto the shop, doesn't explain how it went wrong, isn't clear about what what GroupOn is doing to help this business, and doesn't give any clue how they will avoid this situation in the future.

If I were a small business owner looking to use GroupOn I wouldn't feel comforted by this response in the least.

Re: Groupon Responds: Too much of a good thing?

#6

Haha. It's impossible to hate on Groupon when Andrew Mason writes so well and so sincerely. Good luck haters. That's a good blog response.

I thought this bit was a bit condescending, and starts the response off on a sarcastic note:

    There have been a handful of stories lately documenting the struggles of cupcake
    shops running out of batter or sushi restaurants who don’t have enough rice to
    meet the demand brought on by their Groupon feature.
I possibly missed a Groupon story or two, but I don't remember any where stores ran out of ingredients - the problem is not so much that they can't satisfy the demand (though there is some of that in some cases) but that it's a cost sink that didn't generate the promised increase in "regular" customers.

Re: Groupon Responds: Too much of a good thing?

#7

Haha. It's impossible to hate on Groupon when Andrew Mason writes so well and so sincerely. Good luck haters. That's a good blog response.

I think it is horrible. It shifts blame entirely onto the shop, doesn't explain how it went wrong, isn't clear about what what GroupOn is doing to help this business, and doesn't give any clue how they will avoid this situation in the future. If I were a small business owner looking to use GroupOn I wouldn't feel comforted by this response in the least.

But it IS the shops fault. They entered into a bad deal that they apparently didn't have the fundamental business to handle. It was a terrible business move on the shop owners part, but I don't see a single thing that groupon did wrong in this case. It's not their job to audit your business and make sure you can handle it. They're in the business of brokering specials to large groups on behalf of the business. That's it. What further responsibility could they possibly have?

Re: Groupon Responds: Too much of a good thing?

#8
post #2

They're right. Where this went off the rails was whatever process that convinced a coffee shop to invest in Groupons when they were so close to the edge that missing their number by a couple thousand dollars caused them to miss payroll.

I'm not a believer in any press is good press, but I don't think this will be bad for groupon. The story made me say, wow, look at the numbers of people they get through the door. So many that it nearly sunk a little business - it's so successful that it's actually scary for a business. Groupon's excellent response here helps make the message positive as well.

Re: Groupon Responds: Too much of a good thing?

#9
post #6

Haha. It's impossible to hate on Groupon when Andrew Mason writes so well and so sincerely. Good luck haters. That's a good blog response.

I thought this bit was a bit condescending, and starts the response off on a sarcastic note: There have been a handful of stories lately documenting the struggles of cupcake shops running out of batter or sushi restaurants who don’t have enough rice to meet the demand brought on by their Groupon feature. I possibly missed a Groupon story or two, but I don't remember any where stores ran out of ingredients - the probl…

I agree that this trivializes the problem. A cupcake shop is as serious of a business to its owner as Groupon is to Andrew. And running out of batter is one of the most serious problems a cupcake shop can experience. If cupcake shops are running out of batter it's a problem that Groupon should be extremely concerned about.

Re: Groupon Responds: Too much of a good thing?

#10
From PosiesCafe blog: "When I talked to Lucinda today, she asked if there was a cap on how many were sold to help protect the business from too much loss, and the simple answer is, no. When you sign up for Groupon, you are agreeing to sell as many as get sold… and why would Groupon want it any other way? They get half of the earnings."

From Groublogpon: "Also, to clarify one important point: it has always been Groupon policy to allow merchants to cap deals. If a merchant sells too many Groupons, they’ll have a bad experience, the customer will have a bad experience, and therefore, Groupon loses."

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