Quote:
Originally Posted by TheSquealer
I think that a lot of this is what people simply do not or refuse to understand. If you have a spa - you normally charge $200.00 for the XYZ Massage Package and want to use Groupon, you have to offer that for $100.00 and then you have to give the lions share of that $100.00 collected to Groupon and it takes months to even get that from them.
In that example, you didn't create customers. Sure, you exposed more people to your super duper massage.. but you lost your ass on it, you flooded yourself with useless appointments AND those are not people with money, people who become repeat customers and people who refer people to you with money. Those were people who only did it because it was a "deal" or because it was given to them as a gift or whatever.
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It takes very specific businesses to be able to profit off groupons, most of them upsell aggressively or have a misleading price structure. I've bought groupons in the past where I found out that the "walk-in discount price" was the same as the groupon price.