That points to a bigger flaw in the Groupon model, namely that most businesses who try a promotion end up coming out disappointed. There are a number of reasons

That points to a bigger flaw in the Groupon model, namely that most businesses who try a promotion end up coming out disappointed. There are a number of reasons for that - bad planning on the retailer's end, excessive promotion fees for Groupon, and so on. Until Groupon solves this problem, I don't see an optimistic future. Building a product your consumers loves leads to repeat users and growth. Building something retails hate leads to Groupon.