Merchants Can Now Run Their Own Deals On Groupon
1–10 of 17 posts
Re: Merchants Can Now Run Their Own Deals On Groupon
#2Isn't the entire point of Groupon that one merchant per location gets their day in the sun --- and all the exposure that it brings?
I assume Groupon still takes 50% of the revenue like they do with their deal of the day. Since you're not enjoying traffic by being the deal of the day, I'm not sure why any sane businessperson would accept this type of split on what is a normal e-coupon.
Re: Merchants Can Now Run Their Own Deals On Groupon
#3Isn't the entire point of Groupon that one merchant per location gets their day in the sun --- and all the exposure that it brings? I assume Groupon still takes 50% of the revenue like they do with their deal of the day. Since you're not enjoying traffic by being the deal of the day, I'm not sure why any sane businessperson would accept this type of split on what is a normal e-coupon.
This is addressed at the bottom of the linked page:
What does it cost?
Groupon Store: There's no upfront cost. For promoted deals you get 70% of each Groupon sold. For non-promoted deals you get 90% of each Groupon.
Deal of the Day: No upfront fee, you keep 50% of each Groupon sold.
Re: Merchants Can Now Run Their Own Deals On Groupon
#4Isn't the entire point of Groupon that one merchant per location gets their day in the sun --- and all the exposure that it brings? I assume Groupon still takes 50% of the revenue like they do with their deal of the day. Since you're not enjoying traffic by being the deal of the day, I'm not sure why any sane businessperson would accept this type of split on what is a normal e-coupon.
This is addressed at the bottom of the linked page: What does it cost? Groupon Store: There's no upfront cost. For promoted deals you get 70% of each Groupon sold. For non-promoted deals you get 90% of each Groupon. Deal of the Day: No upfront fee, you keep 50% of each Groupon sold. Was it widely known that Groupon's cut on deal of the day is 50%? I thought there was some to-do a few weeks back about them wanting 100…
If I remember the story correctly, if the cafe didn't go lower than 50% on the deal itself, then Groupon would take 100% of the money it generated.
Edit:I found the link.
http://www.facebook.com/note.php?note_id=443354298928&id...
When the customer pays less than $10, Groupon takes 100%.
Re: Merchants Can Now Run Their Own Deals On Groupon
#5Wont this dilute the deal a day buzz ?
Re: Merchants Can Now Run Their Own Deals On Groupon
#6Wonder what the cut Groupon makes on these, doubt it can be 50ish percent like the deal of the days are. This company almost has a license to print money, I wonder how long it can last.
Re: Merchants Can Now Run Their Own Deals On Groupon
#7Wont this dilute the deal a day buzz ?
You can be sure they have tested the concept for a few months now and they have entered enough numbers on excel spreadsheets before launching this. So to answer your question, it will dilute the deal of a the day buzz, but it will increase revenue.
Re: Merchants Can Now Run Their Own Deals On Groupon
#8Wonder what the cut Groupon makes on these, doubt it can be 50ish percent like the deal of the days are. This company almost has a license to print money, I wonder how long it can last.
I'm bullish on the category. Scalable advertising which actually works for small businesses is, and should be, a license to print money. I might grumble at the $1,500 I paid Google this month but if they told me they had $15,000 of traffic on my keywords I'd happily max out my credit card for a few days.
Take a look at the yellow pages: it's unsexy, it works, it is a multi-billion dollar industry.
Re: Merchants Can Now Run Their Own Deals On Groupon
#9Wont this dilute the deal a day buzz ?
My only guess is that they have so many merchants waiting in the queue that this is an avenue for these merchants to get their deal out.
The only problem is that for the people buying the groupons. I only try to limit myself to 1 a week since that it all that I can afford right now. If more groupons are available, I probably wouldn't buy more unless it was a killer deal.
Re: Merchants Can Now Run Their Own Deals On Groupon
#10This is a huge, huge deal for services businesses. Just making it dead simple to collect revenue online is a win for them. "Send out an email to your mailing list about $10 off massages, get $500 in your bank account almost immediately, service the customers who come in with printed coupons."
Back of envelope math: $60 massage, $50 with coupon, $45 revenue for merchant. Works outstandingly well -- even before you account for the inevitable breakage.