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If Groupon could cut costs by using a self-serve model (rather than 1000s of sales staff) it could drastically cut costs and potentially make a large profit. S
by rythie 15y ago
If Groupon could cut costs by using a self-serve model (rather than 1000s of sales staff) it could drastically cut costs and potentially make a large profit.
Surely at some point in the next few years they will be well known enough for businesses to go to them, instead of the other way around?
- philwelch 15y agoThat assumes that Groupon is actually beneficial to the business that does one. They also need to manage the "coolness" and variety of offers and write snarky copy, so self-serve wouldn't necessarily bring it to break-even.
- rythie 15y agoIn the long term they do need to be beneficial to the businesses that do it, otherwise they'll die in a few years from word of mouth. Who writes the copy is an issue, though just someone writing that would be cheap compared to chasing tons of businesses looking for work and talking to them all.
- philwelch 15y agoThe best bet is that they will die in a few years. The fundamental flaws with their business can't be solved with self-serve. It's not impossible to survive off the efforts of a predatory sales force without actually benefitting your customers, but small local businesses aren't the best prey and you have to actually be able to profit off it it. If you can spend that much money on salesmen, you're better off making enterprise software than social coupons.