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Well, even if you do it at a loss, it's still marketing. Marketing isn't free, and it usually very costly. A stupid billboard costs $5k a month. Our businesses
by joeguilmette 15y ago
Well, even if you do it at a loss, it's still marketing. Marketing isn't free, and it usually very costly. A stupid billboard costs $5k a month. Our businesses (and most, I'd imagine), run Groupons at a loss and make it up through marketing, cross sales and up sales.
We were getting $60 for a $169 product that cost us $80-100 to make.
- jonknee 15y agoSo when you say it's hard not to make money with 2x the customers you actually meant you were losing money... I understand that it's marketing, but it's not making money until you get people coming back without a Groupon.
- joshuacc 15y agoHe wasn't making money directly on the Groupon deal, but on upsells: http://news.ycombinator.com/item?id=2654788 http://news.ycombinator.com/item?id=2654788