Groupon Good or Bad ?

[Normansmith]

Just doing some research on Groupon , many businesess see this new marketing strategy as a golden goose, perhaps anybody using,or considering Groupon should read this...http://blog.agrawals.org/2011/06/07/an-analysis-of-the-groupon-merchant-agreement/

 

[AngelaE]

I personally dont trust buying anything off groupon in case when I go to use it, the merchant cant cope with my and every other customers demand for that particular service. Friends who have used it have encountered this issue.

 

[Curious]

Why any merchant would want to use groupon is beyond me.

To my simple mind you're offering massive discounts, and increasing costs, to target people who chase cheap deals and offers. They aren't going to come back because they'll move on to the next deal whenever they want something.

Why sell something to just break even on it? You might as well not bother. I understand it will bring exposure but all this is doing is reinforcing the fact that if you wait long enough someone somewhere will put a stupid deal on so something can be purchased for very little. Where's the incentive to these people to ever purchase from you at full price?

 

[HFE Signs]

I'd avoid, best to offer your best prices to everyone and let your reputation bring your customers to you...

 

[mdj101]

This couppal must be huge, your not even on the first page of google?

 

[bdw]

To my simple mind you're offering massive discounts, and increasing costs, to target people who chase cheap deals and offers.

Many of the offers are deceptive. I received a Groupon email last week advertising a short stay at the 5* Albatros Garden Hotel in Marrakech with Easyjet holidays. It offered a three night stay for £369 and a five night stay for £449 suggesting that this was a saving of 50%.

I went to the Easyjet holidays website/ There I very quickly found the five night holiday freely advertised at £440.53. In this case booking direct was cheaper than Groupon.

This is not the first time that this has happened with Groupon (and 5pm too incidentally). If you check these deals you will often find that the same deal is available at a similar price elsewhere with lower risk and fewer conditions and restrictions.

Practices like this should be illegal.

.

 

[thetime22]

I say good.

 

[K-rado]

Why sell something to just break even on it? You might as well not bother.

Ditto as per similar Thread currently running.

http://www.ukbusinessforums.co.uk/forums/showthread.php?t=198568

To answer your question; sometimes retailers sell products at a complete loss - loss leaders. this special offer is used to entice "paying" customers thru the door. Sometimes makes for good marketing and sometimes back-fires. from a customer point of view, its must be a good thing so long as you are not duped into buying something else while you are there at twice the ticket price K.

 

[bdw]

from a customer point of view, its must be a good thing

I disagree.

As I explained in my previous post above these "offers" are not always what they seem.

.

 

[DarrenTSO]

If the marginal cost of whatever you're providing is quite low, then it can be a great way to market your business to new people.

 

[Minuteman]

Stay away from it! In my experience nothing like this is good or works. Your best doing any offers in house, through your own website and using them to attract visitors to your site.