The model works. No matter what Groupon does in the future, fat deals as customer acquisition are a fact of commerce now. Black Friday is another manifestatio

The model works. No matter what Groupon does in the future, fat deals as customer acquisition are a fact of commerce now. Black Friday is another manifestation of this. One reason Groupon hasn't had downward pressure on margins is that none of the competitors drive enough customers to businesses. As far as the two-sided market goes, no one else has the customers so merchants are still best served by going to Groupon (unless, as in your case, the cost to acquire those customers is too high).