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Is Groupon actually scalable? Their business model depends on being able to drive huge crowds to a merchant. That might work with one deal per day per market, b
by gamble 16y ago
Is Groupon actually scalable? Their business model depends on being able to drive huge crowds to a merchant. That might work with one deal per day per market, but it might not work if they start pushing more deals.
- spinlock 16y agoI don't think that driving huge crowds is actually their business model. The huge crowds overwhelm the merchant and wind up making the promotion a bad deal for the merchant. Groupon would do better to drive reasonably sized crowds, consistently to merchants.
- gamble 16y agoIt's the crowds that attract merchants to deal with Groupon. I think they tweak the mental association between bodies through the door and success that many small business owners have. Without the promise of traffic (and hope that some of them will come back) Groupon is just a very expensive way to distribute 50%-off coupons.