Quote:
Originally Posted by KRosh
If you are a merchant that is offering a product, then you can lose your ass with groupon. They charge 40-50% of the sale and want you to discount 50% or more from Retail price.
However, if you are providing a service and can up sell, the amount of customers you can gain is phenomenal. It is not a business model for everyone but it really does work if managed correctly.
Also, if you can get a product in groupon goods, there are huge profit potentials. I have worked with lots of the other deal sites selling my small electronics, and no way do they generate the volume of sales Groupon does
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The thing I've noticed about the goods is that they aren't all that great of deals too. People just expect and think they are because they are from Groupon. I remember I bought these Skytex mini tablet type things for $60 last year for my kids. (They already ruined two iTouches, so I just wanted something for movies) and after I bought them I checked on Amazon and it wasn't really any cheaper.