Quote:
Originally Posted by KlenTelaris
Holy Fuck 50% ?????Can someone explain what's a point of using them then?I mean,you already losing some money by giving discount on coupon,and then you need to give additional 50% ?I dont see a profit in that,especialy if you sell hardware goods where income is very little.But that would explain why they valued company to 3 billions.
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Lets say you have a $10,000 advertising campaign to run. You can buy radio spots, ads in the paper but I doubt you could run a tv commercial for that amount. Now, instead of buying newspaper ads you put this money towards your Groupon campaign. Groupon emails a 100k people in your area (more or less depending where you live) letting them know about the deal and it is featured on the local Groupon site for the day.
Your $10,000 newspaper, radio, tv ad will not bring in as many people as a Groupon campaign will. Plus, the cost of advertising is not upfront with Groupon. In fact you get to pocket money right off the bat but that will get eaten up as the Groupons are used.