Groupon used to over promise the results you'd get. The business generally loses a chunk of money (and time away from profitable customers) on each Groupon user

Groupon used to over promise the results you'd get. The business generally loses a chunk of money (and time away from profitable customers) on each Groupon user with the hope that they'll turn into a repeat customer. Unfortunately, most Groupon customers only go to these businesses to get a good deal. I have a couple different friends in NYC with businesses that tried Groupon and will never do it again now. The customers were far more demanding, quicker to complain, more likely to demand additonal free or discounted services, and more likely to threaten bad reviews to try to get their way. Groupon likely works for very specific businesses that cater to customers concerned with price above most other concerns who are willing to run regular sales and discounts to keep those customers a la department stores. And I say the above as someone that has bought physical products through Groupon a couple times.