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40% of Groupon merchants say "never again"

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11–20 of 98 posts

Re: 40% of Groupon merchants say "never again"

#11
post #3

If 60% of their customers want to participate on a regular basis then that's more than enough to build a billion dollar business. I don't see where the scandal is.

Agreed, and I think that number will eventually rise as businesses learn what works and what doesn't with Groupon.

Re: 40% of Groupon merchants say "never again"

#12
post #6
post #2

How is this any different than a company posting a 50% off coupon in their local newspaper? Groupon is just a different advertising route. I'm not sure why Groupon is being blamed for what follows after customers get the coupon in their hands.

Groupon takes a far larger cut than the local newspaper would.

I doubt newspapers take a cut at all. They charge a fee to post an ad. Regardless, this article is describing the aftermath of Groupon coupons.

Re: 40% of Groupon merchants say "never again"

#13
post #3

If 60% of their customers want to participate on a regular basis then that's more than enough to build a billion dollar business. I don't see where the scandal is.

It's not a scandal - I don't think this is a con. But I'd be interested to know how many businesses actually do repeat deals. It seems obvious that brands/chains (who probably do research and analysis) are not (yet) interested.

Re: 40% of Groupon merchants say "never again"

#16
post #10

I'm a physical goods retailer and I'd like to point out a bit of group-think on HN's part. 3 months ago, I asked you guys if I should use a Groupon clone ( http://news.ycombinator.com/item?id=1490096 ) and I got overwhelmingly positive responses (someone even called my concerns paranoid). Now the place is littered with negative attitudes toward Groupon. I don't think the facts underpinning my worries have changed, on…

Interesting: 3 months ago HN was positive, now we're negative. 3 months from now the public / business owners might be negative - and then it's fad over.

Re: 40% of Groupon merchants say "never again"

#17
It seems like every piece of Groupon marketing says not to expect to make money off the deal itself. Then we see people like this complaining that the deal doesn't make money.

From what I understand, Groupon isn't trying to be a wholesaler for goods and services. They're providing an effective advertisement, not moving merchants up the supply ladder.

Though I can definitely see why people would be steamed if they expected that.

Re: 40% of Groupon merchants say "never again"

#18
post #10

I'm a physical goods retailer and I'd like to point out a bit of group-think on HN's part. 3 months ago, I asked you guys if I should use a Groupon clone ( http://news.ycombinator.com/item?id=1490096 ) and I got overwhelmingly positive responses (someone even called my concerns paranoid). Now the place is littered with negative attitudes toward Groupon. I don't think the facts underpinning my worries have changed, on…

Group-think or adjusting to new information?

And have any of the individual people from that earlier thread -- only 7 people! -- changed their advice, or is it a new and different group that's now vocal with negative sentiments?

It'd be a mistake to take either the small sample of the earlier thread, or the people piling onto recent Groupon news items, as accurately representing a single consensus "HN community attitude" towards Groupon.

Re: 40% of Groupon merchants say "never again"

#19
post #7
post #2

How is this any different than a company posting a 50% off coupon in their local newspaper? Groupon is just a different advertising route. I'm not sure why Groupon is being blamed for what follows after customers get the coupon in their hands.

It's very different. When was the last time you cut off a coupon from your local newspaper (I don't even know the name of mine -> Google -> Oh, it's Daily Herald, cool!), saved it in your wallet and used it in the store a couple of days later? Groupon's difference is: (i) it's on the internet, fueled with great publicity it has generated (ii) the brilliant social aspect of the groupon system and (iii) the deal is ins…

"I don't even know the name of mine"

That's kind of scary. I just got a Sarah Palin flashback.

"Groupon is very good at creating hoards of customers; what it lacks, I think, is the consultation that should be provided to businesses about how to limit and handle the crowd."

Maybe they just need to allow businesses to put a cap on the number of coupons that are sold? Since a lot of companies are only advertising to their local market, I wouldn't even think this would be an issue.

Re: 40% of Groupon merchants say "never again"

#20
post #10

I'm a physical goods retailer and I'd like to point out a bit of group-think on HN's part. 3 months ago, I asked you guys if I should use a Groupon clone ( http://news.ycombinator.com/item?id=1490096 ) and I got overwhelmingly positive responses (someone even called my concerns paranoid). Now the place is littered with negative attitudes toward Groupon. I don't think the facts underpinning my worries have changed, on…

There's plenty of hive-mindish stuff on HN but I wouldn't call the response to your original post 'overwhelmingly' anything - you got about 7 responses and those responses barely got a couple of upvotes between them. Statistically, nobody on HN read your post.

I don't have it handy now but on the recent thread about the Portland coffeeshop owner, most posters seemed to feel it was the proprietor's mistake rather than Groupon's fault.

What did you end up deciding, though, did you use a Groupon clone and if so, how did it work out?

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