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It's not a good deal in the short term. I imagine the sales pitch to frequently mention repeat customers, brand awareness, and attention. Then I bet they tell t
by djb_hackernews 16y ago
It's not a good deal in the short term. I imagine the sales pitch to frequently mention repeat customers, brand awareness, and attention. Then I bet they tell them to take whatever it would cost to break even, and double it, that will be the groupon price.
As the article mentions, Groupon has plenty of competitors, with probably room for more.
- minouye 16y agoThe problem with the sales pitch is I don't know how much insight Groupon has into the long-term lift they'll give customers (i.e. how much historical data do they have?). Groupon's pricing seems like it would have to be a stab in the dark--they can't possibly know the nuances of all the businesses they deal with (massage purchasing behavior will differ from helicopter ride purchases). I feel bad for Mom and Pop operations because a massive increase in sales without proper planning could materially hurt their business.