If you don’t need or believe in advertising, there is no reason to look at this. I have seen it attempted many times - but if it is not done properly, it can result in very misleading conclusions. I am sure that it is a bad idea in some cases.Īnd then there is the math, which may be the most important factor. Do you believe that by giving out a large discount you risk damaging your brand? It is a judgment call.

How many potential customers in your area don’t know about you? Do you have excess capacity? Can you handle a surge? The first is the type of business you have. What else would you call something that can deliver 2,000 customers to your store? It’s a beast that can propel your business or smother it. One thing is for sure: Groupon is a beast. Worst marketing ever? Or is it the best marketing ever? Probably both. But the margins are a killer.”Īs a retailer who has used Groupon - as well as traditional advertising - to build my business, I’ve come to the conclusion that there’s a lot of misinformation out there. It brought in new customers - we kept most of them. Might be worth as much as $3 billion (it now looks as if Google thinks Groupon might be worth as muchĪs $6 billion), and yet here are some blog comments from retailers who’ve tried the service: I have never seen anything that is both so celebrated and demonized at the same time. The members who buy theĬoupon get 50 to 70 percent off on a product or service, and Groupon splits the proceeds with the retailer - usually leaving the retailer with about 20 to 25 cents on the dollar of retail value. For those of you not familiar with Groupon, the company partners with local businesses to send a daily coupon e-blast to its members. I have been reading with great interest (especially here) the stories of retailers sharing their experiences

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