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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 doe
by awakeasleep 16y ago
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.
- WarDekar 16y agoGroupon markets to you in a way that claims you'll gain long-term customers, that's where the retailer is supposed to make money. The problem is that doesn't end up happening for a variety of reasons, as has been pointed out elsewhere in comments and the article. Of course Groupon would never tell potential customers of these flaws in the system. FTA: "The 32% that said they didn’t make a profit from the program reported that customers rarely bought more than the coupon deal and few returned to the business at a later date." Tough to make a profit from Groupon when you don't get any additional business from the groupon customers on top of what the groupon was for.