6 ms·
I'm a big fan of groupon, but this situation is going to repeat itself, I'm sure. Recent example: http://www.groupon.jp/deal-detail/cid/4054 http://www.groupo
by fookyong 16y ago
I'm a big fan of groupon, but this situation is going to repeat itself, I'm sure.
Recent example:
http://www.groupon.jp/deal-detail/cid/4054 http://www.groupon.jp/deal-detail/cid/4054
For those who don't read Japanese, that's a mom&pop-like Thai place doing a 500-yen ($6) all-you-can-eat coupon.
They sold 3500 coupons.
I just can't fathom the economics behind that one.
- jbm 16y agoI can't believe I'm defending Group on but.. the normal price for that set is 1000 yen. Furthermore, it's for the lunch menu (ランチバイキング) and the time restriction is such that I doubt they'll ever have to honour all of the coupons. (Furthermore, they are cooking in bulk and you are stuck with whatever they have; I doubt they will strain themselves with the deal) I can think of a few places that are all-you-can-eat (tabehodai) for 1000 yen. I wouldn't bet on the quality of food, but sometimes you luck out. 500 is insanely cheap, but it is near the break-even point (if you aren't including rent)
- SHOwnsYou 16y agoGroupon also takes ~50% of the total selling price. So you are really looking at 250 yen; Around half the break-even point by your estimates.
- fookyong 16y agothe client business does not get 100% of the sale of each coupon. Groupon takes a commission which varies but is reportedly around 50%. So the client business gets 250-yen per coupon.