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What difference does it make? Sure, on one Groupon promotion a few unused coupons can mitigate losses on the deal overall, but make no mistake about it- busines
by dkrich 15y ago
What difference does it make? Sure, on one Groupon promotion a few unused coupons can mitigate losses on the deal overall, but make no mistake about it- businesses use Groupon because it is a cool, hot, marketing play that allows them to be lazy and bring in a ton of foot traffic.
The root of the problem, and the reason Groupon's model is unsustainablem, is that most of these businesses are not producing a product that is different or so unbelievably valuable that people are going to continue to come in and buy it at a price that is profitable in the long run. People go to a coffee shop because it is close and convenient. All coffee shops serve a commodity that is in a price range that varies by only a few cents. Their only way to differentiate is with location. Period. With restaurants it's a little different because food costs and quality vary a bit more, but I still maintain that the only people who regularly buy Groupons are deal-hunting cheapskates who won't be back regularly. All businesses would do better to focus on their core products and pricing, and let word of mouth do the rest.
For a coffee shop owner to run a Groupon promotion to bring in foot traffic thinking it will pay off is lazy, stupid, and shows very poor business acumen.