11–17 of 17 posts
Wonder 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.
This 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 acc…
However, I see a couple of potential issues with this approach.
1) Merchants can offer probably a 5 - 10 % discount (acquisition costs shifted to discounts), but beyond that I doubt if can be sustained. Margins in most local businesses are not that big. So, it'd be hard for a restaurant to do a 50% discounted deal for like a month or so.
2) Another potential problem of this approach - how many users will check each individual merchants store ? People flock to Groupon because there's a new deal every day. Or in other words, the novelty factor keeps things fresh and keeps people coming back. If a merchant is offering the same deal for 6 months via the store, it might not be a big draw for users. This will be completely contrary to the notion of scarcity and novelty that make groupon's a deal a day model so successful.
This 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 acc…
This 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 acc…
This 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 acc…
I agree with you that this can be a great channel for local businesses who want to sell online. However, I see a couple of potential issues with this approach. 1) Merchants can offer probably a 5 - 10 % discount (acquisition costs shifted to discounts), but beyond that I doubt if can be sustained. Margins in most local businesses are not that big. So, it'd be hard for a restaurant to do a 50% discounted deal for like…
Wont 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.
I don't have a particular schedule for my Groupon purchases, but if I see something convenient (that I would have bought anyway) or cool (that I wouldn't have bought except for the Groupon -- window purchases, basically,) I buy them.
This means that in the past month or so, I bought a Groupon for Baltimore Coffee & Tea, which means I got my $34.95 a pound Kona coffee for roughly $17, and flying lessons, which is something I've pondered before, but never pulled the trigger on.
Half off is a fine motivator.
I'd be happy to spend more money with Groupon if there were more interesting offers being presented, and upping the quantity of those offers is likely to increase the odds of that happening.
This 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 acc…