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Of course you're going to sell a lot of Groupons. But what was the real cost to you based on your margins from whatever you were selling/discounting? Any repeat
by clobber 15y ago
Of course you're going to sell a lot of Groupons. But what was the real cost to you based on your margins from whatever you were selling/discounting? Any repeat business from said Groupon customers once the deals are over?
I think this is the main problem for small businesses that have very slim margins and are not seeing return customers after the deal.
It seems that Groupons may be better for SMB's that are service-based (salons, dentists, spas) and have the margin to give.
http://www.quora.com/Groupon/Is-Groupon-good-for-businesses-over-the-long-term http://www.quora.com/Groupon/Is-Groupon-good-for-businesses-...
- joeguilmette 15y agoWe were getting $60 for a $169 product that cost us $80-100 to make. You're right, a spa is a MUCH better fit for Groupon than a coffee shop. Higher margins, repeat customers, the ability to schedule customers (weekdays only, etc), etc. That said, if Groupon is going to kill your business and is a poor fit, why run a Groupon and then complain that it does so? These horror stories you hear about, these businesses would likely be in dire straits anyway because the owners show little business acumen. The attrition rate for B&Ms is ridiculously high and always has been.