3 ms·
I'm not sure I see the business opportunity here. For one, the Groupon business model has been universally panned here on HN. Furthermore, the grocery business
by jwegan 15y ago
I'm not sure I see the business opportunity here. For one, the Groupon business model has been universally panned here on HN. Furthermore, the grocery business is a notoriously low margin business (both for the stores and the brands). Even for the higher margin items in a grocery store, very few items are really unique. Most products in the grocery store compete either on branding or on price. Since group buying appeals to the price conscious consumers, the are unlikely to remain loyal when they have to buy your product at normal price.
Finally, coupons for items you buy in the grocery store are wide spread and been around for decades. One of the revolutions of Groupon was being a coupon distribution channel to get coupons to places you normally wouldn't.
- deleted 15y ago[deleted]
- Gaussian 15y agoFine points. But even low margin businesses need marketing. In fact, I think you'll find these low margin businesses do quite a bit of marketing--and they blow a lot of their wad disseminating coupons through newspapers, a medium that has been in decline since 1987.