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Loading ...[This is an excerpt from my new book, Groupon: Why Deep Discounts are Bad for Business]
I believe discounting, couponing and the like whether through Groupon, LivingSocial, citywide365 or any of their clones are killing the freedom of private businesses to operate competitively for profit.
I believe these sites are the worst thing since Wal-Mart because they reinforce customer beliefs they need a deal to open their wallets. They’re even more insidious; at least you could see Wal-Mart coming. While Groupon is only in major cities now, they are one of America’s fastest-growing companies and they or their clones will be in your market soon.
Every day as a business owner or brand manager, you can voluntarily cede control of your own destiny by settling for customers who either demand a discount – or say they will leave.
If you sign on with Groupon or their clones, you will be chasing those who said they would leave but have never spent a nickel in your store, perpetuating the mindset that “discounts to people who don’t know you” actually works to grow your business.
This only proves there are cheap people out there – all at the expense of your business’ profits.
You will you then have to make up your profit loss on the backs of your loyal customers.
Instead, tell those customers insisting you match a price, offer a “deal” or a Groupon,that you had a choice a while ago to either pursue price or quality and you chose quality. Its a choice your customers have appreciated for years. ”That’s because we’ve discovered, as I’m sure you have, that you truly get what you pay for.”
You might even put that in an upcoming email along with the message “No Groupons – Ever.” That way your best customers know no one gets a better price than they do.
Then go out on your sales floor with a new attitude, a new direction that says you won’t settle, and I promise you, you’ll find your way without discounting or couponing to people who don’t know you, aren’t interested in your success or who are trying to make every interaction “a deal.” But you will have to look at your sales floor and change those things that may be keeping customers from returning.
You won’t do that by playing Santa Claus, happily handing out your profits in the hope customers will return to you.
Or getting your brand loyalty hijacked to an online coupon site or blog.
Or chasing those selfish individuals who might profess to “shop local” but expect a 20% (or more) discount to do it.
Profit is what makes your business, your franchise, your very future work.
I want you to have more of it so we can stop reading about how America has lost our way or that our best days could be over.
That’s baloney bullshit!
What we’ve lost is a respect for selling ourselves and our wares. And along the way, our self-respect as business owners. That’s why so many businesses have become a target for the online coupon sites ready to have you give your all to their cause.
Wake up!
Your local retail, your main street, your downtown, your brand is being commoditized, swallowed whole and left wounded as more merchants sign up for Groupon and the rest.
You’ve all been through what happens when a dirt-scratcher competitor moves in. Like a neutron bomb, they low-ball your window fashions, your vehicle, or other business because they underprice and receive a much lower margin.
Even when they’re gone and out of business, they’ve changed customer perceptions of your pricing structure. Inevitably they’ve also left a lot of problems because they didn’t do a good job. When it goes bad, those upset customers come to your business. Since they know you also sold that brand they expect you to fix for free when you received none of the profit for it.
Or they’ll expect you to lower your prices to what the competitor did because the business that went out made people believe theirs was the “fair” price.
Look at your numbers; you’ll need to make 20% more sales if your margins drop from 50% to 40% just to replace the lost profits.
It would mean you’d have to increase traffic 40% if you sold one out of every two people who came in. Most businesses’ closing ratios are a fraction of that; you could potentially be working twice as hard for no more return on your investment.
And whether you are a big-box retailer, a mom & pop or a major brand like GAP, if you continue to trade your prices down, only the online coupon sites will be profitable.
But do you care if its your competition?
A Nasty Tip To Use Against Your Competitor
Sign up for Groupon and all the rest in your local area.
Yes, you read that.
Then monitor their “deals of the day.” When your desperate competitor’s offer shows up, buy it and tell your friends to get as many deals as you all can.
- Call or use them up whenever demand will be greatest – thinking busy Saturday or the holidays
- Be as miserable as you can as a new customer.
- Demand more for paying less.
- Wave the Groupon or whatever discount around and tell everyone in line what a “deal” you are getting.
- Accelerate their learning curve that coupons and discounts destroy profits.
In all seriousness though…
My Challenge For Your Business
Will you stand out in your market today?
Be the restaurant everyone wants to go to because the food AND service are so great?
Be the spa that gives the very best massage and follows up better than anyone else in your neighborhood, city or state?
Be the retailer with only the best of the best of your merch?
Be the hotel that reclaims the hope and spirit of hospitality that got you where you are now?
I hope so because the future of the retail industry is in your hands. If you’re looking for a speaker for your next event that can focus attendees from online discounts like Groupons and other coupons to creating an exceptional experience and selling their merchandise, I’d appreciate the opportunity.
I’d also appreciate your tweeting or FB ing this final review to your association or other partners in your success.
Thanks for spending the last several weeks reading my thoughts.
Now I’d like to hear yours…
This is an excerpt from the new e-book, Groupon: You Can’t Afford It-Why Deep Discounts Are Bad For Business
Bob Phibbs, the Retail Doctor®, has helped hundreds of businesses in every major industry, including hospitality, manufacturing, service, restaurant and retail. He is a nationally recognized expert on retail business strategy, customer service, sales, and marketing. With over thirty years experience beginning in the trenches of retail and extending to senior management positions, he has been a corporate officer, franchisor and entrepreneur.
[Update 11-4-11 Checkout my new post The Groupon IPO - Bad News For Main Street? ]
Learn how to improve your business with The Retail Doctor’s Guide to Growing Your Business.
Great series of articles!
I am curious whether there are any websites that use a different model than the daily deal model that you think can be beneficial to merchants. I am thinking about [ED removed] for instance. What are your thoughts on them or any alternative to the daily deal model?
Regards,
Sergio
HI Sergio, I just don’t think online coupon sites are the way to go. Period. If you want to reward customers who know you on certain items and at certain times – I’m all for it. After all, they’ll appreciate it and be there when you need them. Thanks for commenting!
Dear Bob,
I enjoyed reading your take on the Groupon phenom and after reading your theory I agree with you. Groupon is a boon to consumers and a bust to retailers in particular. Many retailers are hearing all about the success of Groupon and so are jumping in without giving it much thought. I’d love to share your series with our members.
all my best,
Kathleen
Great summation.
Just one quibble. Your math is off. If you need to increase sales 25%, you need to increase traffic only 25% if you assume the same closing ratio that you normally had. In my experience a lower price or a discount would probably elevate the closing ratio a bit. Your point is right, your math is just wrong.
Thanks Stephen I updated the post using these figures. If a store normally had an average check of $38.12 with a 50% margin for 100 customers, if margins dropped to 40%, they would have to have 120 sales to get to the same $3812 per day. I believe the closing ratios would not be the same because, even if your promotion attracted more people it would spread your forces thinner taking more effort to consistently get the additional sales. Yes?
125 actually and yes a 25% increase in traffic. So by taking a businesses average customer base per month for one year and basing a deals activation on a 25% increase in this number (based on a deal that is valid for one month) would still allow this business to maintain it’s current balances? I understand how you are turning general markets into commodities, and the effects on consumerism in general, but by balancing figures and utilizing control over the way a deal is offered you can mitigate pure financial risk correct? I completely agree with the fact that this model is still an abhorrent degradation of the value of goods, but businesses that already offer quality goods, and high levels of services could still benefit from small loss leader marketing schemes couldn’t they?
Zach, I believe if you have quality goods and high levels of service, the crush of customers such a promotion brings can degrade the customer experience. Being a social buying program, those dissatisfied customers will vent on Groupon, LivingSocial, Facebook, Yelp, Twitter, you name it. So loss leader poses a much greater exposure to your business than any ad or promotion you could ever do.
Bob,
Great series, loved it! I was reading CNN this morning when I came upon this link and thought of you: http://bit.ly/aDaJ7K
I swear the Christmas season starts more early each year, now Google can control the flow. How do you feel about Google possibly influencing retail numbers?
Again great blog, love it.
Thanks Matt – tell your friends! Thanks for the link, actually as retailer I love the Google information – makes buying a bit easier. I’m preparing my annual white paper on the six stories you will hear for the holidays – the end paragraph of that article is the same crap we’ve heard for the past 11 years- “shoppers will be looking for the deal.” Small business owners: trade your experience away for the lowest price and we’ll be reading about your business closing in January! Resist the urge and stand out for something or you’ll fall for anything! Again appreciate your visits Matt!
Okay, so you go on and on bashing Groupon, never ONCE suggesting how businesses can more effectively get new customers through the door. Groupon is not a money-maker for businesses, nor should it be thought of as one. ANY business agreeing to do a Groupon should say, “Yes, I am going to lose money on this.”
The ONLY value is in new customer acquisition. That’s it…that’s Groupon’s value prop. They don’t exist to make businesses money right away…it’s advertising. If you spent $8,000 on a display ad in the Sunday New York Times and didn’t recoup that money DIRECTLY from people who saw the ad and came in…would you blame the NYT for ‘corrupting and swindling’ your business? Groupon (and sites like them) offer businesses a way to GUARANTEE new customers through their doors, in a way no other form of advertising/marketing can. They do not offer businesses a way to make quick money. Traditional advertising/marketing vs. collective buying websites. I’d take the latter. No contest.
JohnJohn, Thanks for your comments.There will be a followup on how they can get customers in the door. If an ad is taken out in the NYT, it is still your business advertising your product. Groupon and the rest are advertising A BUSINESS at a price – not your business. The local business fills a void for the category. So it is a massage shop Wed, a salon Thu, a restaurant Fri, a coffeehouse Sat, a massage Sun, etc. As I’ve shown in previous posts, getting customers in the door with a high discount does not convert to acquiring profitable customers in the future.
JohnJohn,
I think the other aspect thats a bit off in your analysis is that you are Not guaranteeing new customers… you may very well be cannibalizing your existing customer sales.
One of Bob’s main message I’ve taken is the customer that is a deal shopper isn’t your profitable customer most of the time. That customer has no sense of ‘brand’ loyalty to your shop, and will spend the extra time shopping around to find whoever is giving away their product that week.
Its classic 80/20 rule: 20% of your customers generate 80% of your sales. Concentrate on the customer experience for your loyals instead of trying to entice the great unwashed.
Good series of articles. Listen to people long in the restaurant/retail biz at the link below. Groupon is a predator on the backs of small business
http://unplugged.restaurantintelligenceagency.com/2010/03/5772-new-customers-how-can-i-not-love-groupon.php
Just got a link about a Groupon photographer at http://techcrunch.com/2010/09/16/groupon-photography/. In particular, “I’ve seen these deals pop up countless times on groupon, and no one is verifying that these are legitimate businesses that can fulfill their promises. It is physically impossible for a pro photog full time to do 1,000 sessions in a year (and on location at that).”
The volume of users (around 2,000) generated for a small photography service by a Groupon deal seems pretty impossible to handle for mom and pop shops. I ended up not buying a heavily discounted one-hour cleaning Groupon for a similar reason, when the deal closed it basically meant 2,000 hours of work for just a couple of guys, which seemed to me like it would take years.”
On your point about [in]ability to fulfil, I couldn’t agree more. Earlier this month I saw a Mothers’s day special one hour massage for $45. They got 600 sales. Then I looked up who was offering it: A one woman band and her friend.
Consider the buyer’s expectations: fulfilment of the massage on Mother’s day or thereabouts. Not 2 or 3 months hence. But few massage therapists can do more than about 5 or 6 per day – it is hard physical work. So lets say they stretch it and average 15 per day between the pair of them. That’s 40 days worth of work – 2 people tied up for 2 months at $20 per hour (150 massages each, totalling $3000 each) to service new customers. At the original $95 they would only have needed to do 32 massages – a big difference. Granted there would be more tips with the volume, but not enough to compensate for the delta. Don’t forget the increased laundry and materials cost!
Now consider the alienation of loyal customers who now can’t even get on the calendar, because its is booked solid! Can you imagine how many profitable sessions from those loyals will go to the competition who have better availability. And besides that, how many of those who bought the deal will get what they hoped for, anyway. Most will likely be dissapointed and resentful even before they get to the massage, which is now being given by someone who is exhausted and has her mind on her ever deminishing financial status.
What an almighty disaster! If you think groupon is bad for retailers with fast moving consumer goods… for service business it is commercial suicide.
Wow – great articles! I wish I’d read them before a friend of mine signed her spa up, and sold over 250 1/2 price massage coupons… even with 4 therapist each at 4 massages a day it will take half a month to do just those clients (really customer – they’ll probably not stay as clients as they won’t pay full price).
Are business owners really that desperate for instant money? As you pointed out, they aren’t branding themselves, they’re branding the coupon company.
You’re right, there are some restaurants I never would have gone to without 1/2 off – and very few of those I’d go back to and pay twice as much!
I’m definitely going to forward this series to some of my clients!
As the owner of several restaurants, and doing a Groupon for our business; my experience was pleasant.
We rarely discount our prices, but do offer rewards and miles for certain card holders.
For me, it was a great way for our current customer base to enjoy eating at our restaurants at a discount. It also allowed for several customers that couldn’t afford to eat with us, due to the downturn in the economy, to enjoy a meal or two.
I think if Groupon sales equal more than 20% or so, then the business has not done enough to build up seperate, independent customer bases. Its when a single source of incomes from a concentrated customer, that business stability comes into question. It’s one of the reasons why businesses that used traditional media, during the decline of the newspaper and tv ratings, also lost business. For example, our Groupon, coupon and mileage dining discounts only account for 5-8% of our monthly sales, which is where I want it.
As far as conversion of Groupon users to customers for a family owned restaurant that is unique and personal, we have made it work for us, making most of the Groupon people into dining once per week.
My only complaint with them is the pay structure being paid out over 60 days, but I have aging accounts that I would love to have them pay me within 60 days.
Great midnight read….
Thanks for stopping by Thomas. I’d love to see your hard numbers on such a promotion.
Quite a good point Thomas. I believe maybe the coupons are a good marketing strategy as long as you know how to use them. I see all the points that bob has made Including the very very important issue that these groupon customers will very hardly become premium loyal customers. However I believe that the fact that the deal happends only if a certain amount of customers are reached talks about being able to move through the demand curve with a controled risk. I found this article because I am thinking about creating my own discount website here in Mexico where the idea has arrived just a couple of months ago. And if I do it for sure I would advise to business advertising with me “Hey don’t give away all of your profit! You have to know when to stop so we can keep working together for very long.”
I would imagine you would think marketing with coupons is good Aruro if you’re about to launch a site that sells them to people. There are big risks to areas you don’t immediately see with these types of promotions. Thanks for stopping by.
I totally get it, the more I think about it the more I find the problems and difficult to make it actually profitable or sustainable. And I’ve just analyzed for a few days
Two months ago I started being a frequent user of this websites in Mexico (found it amazing and the “Why didn’t someone think of it before” idea came into my mind with the first coupon I bought). In fact, I was so convinced about the win-win situation and the potential that this whole idea has, that I even applied for a job at Groupon; in fact, I’m starting next Monday.
Eventhough I don’t understand the small print yet, I had the same opinion as Arturo does while reading the articles. Meaning… the possibility of being really clear with business owners on what should they expect, but mostly, on how to calculate the correct % of discount they’re able to offer in order for them to still have profits.
I do get you point Bob, and in fact thanks, because you’re really opening my eyes at the right moment for me; I’ve already quit my old job so, I don’t have too many options. I guess I’ll try this job, study from the inside if what Arturo and Thomas mention is possible, and most important, how do the bosses would react to that (… and here I can even hear Bob’s laugh, but anyway…). Arturo, I’d really appreciate exchanging opinions on this with you, and how is this working in Mexico.
Groupon is receivables factoring updated for social media. Retailers love the short-term cash checks and pray for new customers.
There’s an old saying: out of the frying pan, and into the fire.
Control: We see these coupon sites in general as decent vehicles for selling models that are going to be phased out or are not selling fast enough. In that process, we pick up new customers who have now tried one of our products and may recommend or buy others down the line especially around gift giving time which is important for our wallet sales.
However, I agree, if overdone in general, it is a dangerous Faustian bargain from a retailer’s point of view. But just like the volume vs. price curve that Walmart runs on, one has to decide where one’s money will be made. Many companies do okay with just Walmart as their single distributor but how much danger do you want to embrace with all eggs in one basket?
Hi Bob,
A continuation from the Retail Summit in Chicago over the summer. Anyway, Groupon wanted to “feature” us when they first entered the Pittsburgh market but their lawyers and I could never agree to amend their fineprint (small owners watch out). We refuse to participate in any of “coupon” sites and instead work very hard to create and feature our own in-house “Grouponesque deals”. Because of our success with our in-house marketing of specials and value-added propositions, we lead our DMA in every possible segment and continue our record of annual growth year in year out. The idea of Groupon is great, the trick is to take that idea and impliment it for yourself to enhance your own brand and not “fill the clearing-house’s deal du’jour”. Oh, and just to back up with hard numbers that our idea’s work – we can bring in over $72,000 in two hours with our in-house deals.
Hey Scott, yes, working with your own customers to increase sales is the ticket!
Agree with much of the series about the economics of flash buying but it would seem like the real opportunity is improving the mechanics of traditional loyalty programs and things that help your most active/profitable customers.
I would be curious to hear your opinion on “random offers” like the things emerging from check-in based applications. i.e every 10th customer gets a promotion over the week.
How would you suggest the economics stand up and if they are decent then leveraging this type of promotion rather than a deal of the day? Obviously your most frequent customers are going to have a better chance and you can still get the same viral behavior if it is a compelling offer.
Bob,
Just discovered your blog–perhaps just in time. We have a Groupon scheduled to run this weekend. Here’s a different twist I’d like your angle on: we are a small hardware/kitchen & bath store. The Groupon is set to be for design services (which engender sales of our products) and a small ticket discount (1/2 off $20). Our average ticket is $320. Can you foresee value in the deal being on something that is not a profit center but that will drive profit center purchases?
Hi Jason, You’ll have to let me know how many just get the 1/2 off discount without doing anything else. From what I’ve read of others, thats all they are interested in but hope it works for you.
There are some of these companies that work more closely with the retailer and have revenue share models of 70/30% where the retailer retains the majority of the sales generated. They caution against not overwhelming capacity, capping the deal. Is there any model that you would see as useful to the retailer?
Hi John, sorry I don’t see this as a valid use of your time and $. Work on your website, be visible to people who are looking rather than bringing dirt-scratchers to your door.
Bob –
Seems like you are taking a very generalized view of this model, various studies recently confirmed some of your points, but indicate that it is indeed profitable for the majority of businesses (66%). You could have saved a lot of time, shortened your posts, and simply noted that businesses should evaluate margins and marketing budget before offering a deal. It doesn’t work for some, it works well for others.
The notion that all people using Groupon and other sites are bottom dwellers is pretty insulting, given that you’re referring to around 15% of the population at this point. Sure there are some people who are “coupon jumpers”, it’s a cost of businesses, but data shows 10-35% of people return after trying out an offer. Then there are intangibles like word of mouth, that you keep pressing people to quantify (which of course can’t be done) but have to recognize it is a win for a small business if they get a couple hundred people to evangelize their experience.
Furthermore businesses often stipulate the offers are for new customers only – it’s a more effective customer acquisition platform than any other out there (even with modest conversion rates to full paying customers, compare against Google, FB, print – there is no comparison). I don’t hear any points to counter this from you.
You’re bashing a business with a $1.3B valuation, a high % of repeat business partners, and a waiting list of thousands more, something doesn’t add up.
Eb, there is a big difference between a survey where owners “felt the promotion was profitable” and actually being profitable. Let’s take for example the spas since they are frequently seen in the online coupon sites with $29 for a $79+ massage. Let’s say you pay a worker $12 an hour to deliver that massage. On the surface, you could say you are still “making money.” But when you realize the 50% cut of the online coupon company like Groupon less cc fees you are getting about $12 for that. You might say that is a “break even.” But many spas are reporting hundreds if not thousands of coupons purchased and having to book them all. What does that do for your regulars? What about the payroll taxes, rent, etc? Is all of that figured in? If the massage owners are doing the massage themselves, do they not see a price to their own time? I would love a detailed business profit and loss showing these promotions were profitable for the business rather than arm-chair survey responses. The bigger question will be which of these businesses 1 year from today will still be in business versus those who do not participate.
As to new customers only- I beg to differ with you. If you are going to discount and coupon anyways – why would you punish people who are already shopping/buying from you to reward those that don’t?
I’m hardly bashing a business – I’m taking issue with many of the claims that are made about couponing and discounting in general – and the promise of “easy money” that these online coupon sites seem to promise and many small businesses consider. My opinion is part of my role as a consultant, speaker and author.
John ~ if you’re still around, I’d like to know the names of these deal services offering such “greater-than-average” share percentages…
Great read.
I think the lesson here is, buyer beware. As another person mentioned in the comments, the businesses participating in Groupon or other daily deals websites should not go blindly into it. But then again you can say that for other forms of digital marketing such as CPC advertising (i.e. Facebook, Google AdWords). If you don’t know how to use the tools at your disposal, you could end up with unprofitable results.
Another piece that’s missing here is that retailers should have a plan on how to convert those new customers into ones that would return and become loyal consumers. If you’re a retailer with an average experience, a massive influx of new customers will just expose your flaws. Fixing those flaws before embarking on acquiring new customers would be sound advice.
HI Marc, thanks for visiting. I don’t see how you could really convert people picking your products up for pennies on the dollar into ones giving you high profits.
Hi Bob,
Perhaps you are assuming people with these couposn won’t come back for a second visit? That is completely untrue. Groupon has done numerous studies showing the income for people purchasing this deal. It surely shows that most folks have the income to make it a regular visit. Not to mention, most “restaurant” deals, you end up spending MUCH more than the deal offered. Tough to spend $50 dollars on tapas, sushi, etc. when it’s a table of 2-4 people. Don’t blame the customers who don’t properly because the service sucked. I blame the businesses that can’t handle this deal. The first woman you interviewed, seemed like she was lost in what she was doing, and went in with NO clue to expect. Bad idea, you have to be prepared FOR EVERY outcome.
Kevin, why would they come back when another deal will arrive in a week or so for the same type of restaurant. The brand being promoted is Groupon, not the restaurant as I’ve shown repeatedly. Thanks for commenting.
Hola en Colombia apenas esta entrando este sistema, asi que aun la gente esta corriendo detras de el, y se habla como una gran empresa y panacea a las ventas, pero es real lo que dice Bob…en mi caso particular hoy tome una oferta en un spa que me costo 75 y que en su normal venta vale 350 un descuento demasiado atractivo ,pero mi pregunta es igual a la de Bob…son 20 sesiones o sea cada sesion en el spa recibira , 3,75 sera que si le pagaran a la trabajadora algo? como sobrevivir a ese costo…es casi imposible. comparto como consultor de marketing, es un riesgo a largo y mediano plazo embarcarse en groupon, no sabemos su reaccion en esto paises como el nuestro , espero y no se transforme en una piramide como las que casi acaban nuestra economia en años anteriores.
saludos a todos desde esta hermosa tierra Colombia, y ojala no nos caiga una peste de marketing traida como siempre de tierras mas ricas.
Very wise, very true… but what comes next.
I caution readers against losing the war for the sake of the battle.
This series seems to lead the commercial reader down a path that may have no way back.
Good businesses understand opportunities and react accordingly.
Groupon is an emerging trend and platform to capitalise on not hide from.
Good advice but I would like to see the stronger counter argument to this series explored – “How Groupon can help grow your business and profitability”
Chris, I’m sure you can find PLENTY of people saying couponing is the way, that its all just a “marketing” cost, etc – especially from the buywithme, livingsocial and groupon sites.
I think you make a good case for not using Groupon, however, I’m not sure all of your arguments apply to any type of promotional pricing or promotional offers. Promotion have been, and continue to be, a powerful tool for business owners (small, medium and large) to grow their sales.
The success of any promotion is largely dependant on several factors including the target market (how targeted…?), the specific offer (50-90% off is a loser for the merchant) and the terms of the offer (redemption, timing, etc.)
There are good reasons to use promotions to drive business, but the math has to work for the merchant. (e.g. cost of a new customer, sales costs, product costs, and profitability of the promo).
Again Rob, show me the hard numbers on such promotions other than # of people showed up with a coupon. Did they return? When? Spending how much? Versus the normal average ticket? Without those numbers, it becomes a feeling of how successful it was, not a “powerful tool” to grow your business. For very large brands, Wall Street can make up the difference or venture capitalists but at some point, someone has to pay for the discounts. Thanks for stopping by.
I am a consumer and as a consumer and not a business owner, is Groupon good for me? I understand that as a business you are warning people about the shortcomings of Groupon, but is it adequate for a consumer? Should I be wary of the “little guy” that may not stay in business? Should it be safe to purchase Groupons for a larger server, like a Redbox, or some other established company? I respect your distain as a business owner, and if I open I business I will do my own coupons or discounts and avoid Groupon completely. Thank you very much!!!
Hey Steve, yes I fully understand why, as a consumer so many people like Groupon. You raise some good points. Thanks for stopping by
Hmmmm….
Many of the issues you raised are very true i.e. one time shoppers – 75% profit giveaway – current customer resentment – staffing problems – brand identification – customers waiting for your next coupon – etc.
Discounts and coupon must be used judicially by the merchant.
A perfect example of the misuse of a promotion is the stamp craze in the 60′s and 70′s. (Yes – I am that old.) Every merchant was handing out Green Stamps or Plaid Stamps or Triple S stamps. The competitive edge disappeared with every merchant using them.
My company has a unique business model which uses the merchant’s discounts to drive traffic to their businesses and reward local schools, churches, sports teams and charities for sending customers to the merchants.
Participating merchants reward the customer with a small discount (Not 75%) and reward the referring fundraiser with a donation for each customer.
The merchant pays nothing until he has money in his hand.
Considering your aversion to ill conceived discounting, I would appreciate you opinion of our program.
Excellent articles and the same arguments I have used in most cases.
As a marketer I do monitor these deal sites and the most of the local broadcast outlets have the Deal of the Day and give them little promotion and no money, unless that is changing. It kills sales when these un-loyal followers go to competitors with a deal, so all retailers and restaurants all need to be informed not to sign up their business, because they just WAIT for the next restaurant. What a fun game of where do we go eat this week. Cause they won’t be back til your next deal.
One point I would like to make is what small business has a marketing budget of 16,000, $160,000 or $300,000 to advertise. Yes, a restaurant got 10,000 coupons bought at $20 for $40 or $400,000 in product sales. They get $100,000, but this is only good if you are planning on going out of business even if only 85% of the coupons are redeemed. They need to take out a loan to cover the cost of another $100,000 if they can survive the hoards of cheap customers. They wait staff can only hope they leave a tip when the bill after coupon is a couple of dollars. After all they want they complete deal even though tax and tip are not included.
Most restaurants don’t have more than couple of hundred to a couple of thousand dollars a month budgeted for advertising, yet they will jump at the chance to GIVE-AWAY the store.
Thanks again for your insight and words of wisdom.
[...] Big talk about Groupon and is it good for your business. We than come up with some marketing strategy for using it more effectivly. Here is a Link to Dr. Fibs and his options on Grupon. [...]
[...] don’t have to look very far on the web to find stories of disgruntled retailers, spa owners, restauranteurs, and even photographers who have been stung by a Groupon promotion. [...]
Wow, there is a LOT of hatefulness in this article for companies that basically had a clever idea and have helped thousands of businesses increase and grow. I might have a change of tune but am about to do one soon and was doing my research. I especially disliked your advocacy of trying to hurt your competitors. I think if you are in business you should focus on being the best and having an excellent offering that fits its market…not focusing on trying to hurt your competition.
I don’t see businesses surviving that have that mentality…at least it’s no good way to go through life.
Holly, I guess you didn’t notice my words, “In all seriousness though…” Hatefulness? Really? Thanks for stopping by. Enjoy your Groupon offer.
Bob,
Fantastic articles – I completely agree with your thoughts, and wish more small businesses would start seeing how bad the grouponesque phenomenon is for them. (such as holly from the comment above).
As a small business owner, I hope groupon and its clones will dissapear, as I believe their deals from companies such as holly’s could erode the perceived value of the commodity sold in general. For instance why would anyone ever pay 100 dollars for a massage at a spa again if it now appears that 50 dollars is the going price? or why would anyone pay 50 dollars to go eat sushi if you can get it for half that
I am interested in your thoughts on the economic ramifications of an industry wide shift in perceived value based on the group buying phenomenon.
Well that’s it exactly isn’t it Stej? As we believe that goods are “truly” worth 1/2 of what they normally are, will those industries be reduced to providing the minimum? I think one could say that yes. Will resorts be the only ones who can demand full price and therefore provide an exceptional experience? Possibly. Thanks for commenting!
Bob,
Great articles. Sums up a lot of the discussions about Groupon I’ve been having with friends.
One thing I’d just like to clarify (that I think you partially mentioned but could use elaboration) is regarding customer differentiation. You could make the argument that most consumers accessing Groupon’s site to get deals are a specific group of customers – discount seekers. As a small business owner, these are the precise customers that probably will NOT be repeat customers once the price tag returns to normal.
As for word of mouth, discount seekers as a whole (me included) are much more likely to brag about the deal they got from their Groupon than praise the actual business or brand in question. While the discount seeker may mention the company’s name, the positive word of mouth does more to cement the “perceived value of the commodity sold” as Stej29 mentioned than it does to promote the individual brand. (No matter what the survey’s Groupon puts out may say – As an aside, “armchair” surveys such as these, as you mentioned earlier, do not merit consideration, especially when produced by the company profiting).
Thanks again for your insight. Look forward to reading more from you.
Thanks Graham. I talked with a major retailer the other day. Premium. High quality. Known brand. She shared with me that when they put on a sale, they get a whole different customer than their usuals. I found that particularly interesting because conventional wisdom would have predicted their own customers came out in droves but they really didn’t. So what does that say – as you point out – about who you are concentrating on? Appreciate your comments!
Thank you for this informative article series. They confirm, with some good arguments, my own feelings in regards to Groupon and using them as a service. Lately I’ve found myself “reminded” of them over and over as friends have mentioned that it might be an option for me as a small business.
I’m just myself trying to build up my own clientèle for my massage business. I know my product is good enough that once people try, they’ll return. As long as we’re talking about serious people here, not bargain hunters.
What you say about bargain hunters confirms with what I’ve experienced myself. Those I’ve sold discounted massages to only buy when I’m offering a discount. Those who’re returning clients don’t even use the discount vouchers I gifted them as thank you for their loyalty! Many of my regulars don’t even take me up on my special offers.
In my experience, when we’re talking about quality products, people buy when they want/need it, not when it’s on sale. Those going for the bargains like that are often not really interested in the level of quality.
Today I saw a Groupon offer of 35€ for 80 min of massage and facial. Groupon takes 50%, so that leaves 17,5€ for the biz owner per massage sold. Of that you roughly have to pay 25% in social charges (where I am), which leaves 13,125€, which means 9,84€ per hour. Minimum wages here are 9€ per hour. That leaves you with less than 1€ per hour to pay rent, and all the other charges. It’s simply impossible. I quickly concluded that either the business was a scam, or it’s a promotion stunt they’ll never earn anything on. Add to that, that a massage therapist can max do something like 80-100 massages a month. So selling several hundred massages through this, leaves you as a single person working for months without any income and without any chance to pay your rent and other expenses! Certainly not a way to make any money!!!
Does Groupon (and like “services”) require that you do offers ranging from 50% and upwards off? Or why are they all like that?
What are your thoughts on first time client discounts of say 10-20% to get them in the door and become familiar with your product?
What about the idea of offering a small extra service/product for free along with your first purchase?
Thanks for your thoughts!
Cheers,
Pia
I wish to have read this before going into a deal, is true I am almost out of business I myself decided to go into a deal ,,sold 450 coupons with and expire of 4 month, now 3 months into only 190 have redeemed their voucher so everybody got an email reminder from the site telling them that is was about to expire, now I am getting angry clients who at the last minute just want to come in and i am trying to fit as much as I can even opening on Sundays ,,,only they dont understand that is impossible to do that amount without going out of business, not being able to take any other clients rents is coming from nowhere , they should of called in advance plus everybody wants appointments either Saturdays or Friday nights, this people dont accommodate to you even if the voucher say so,, so I am getting bad reviews, and for sure not returning clients,,,,A big headache
Viv
Great information. I will definitely send out a few tweets- thank you for putting all this together- helped me a lot on a strategic initiative I am working on. Was wondering if you could comment on groupon’s threat to google? And what you think google should do about it if anything. Obviously their offer site it not the answer to the groupon threat. Curious to see what you think.
Thanks,
C
I think Groupon is definitely a force to be reckoned with – look at all their adoring coverage in the media without any critical analysis. Groupon was first to market and they now seem to own the name “cheap.” The big money in Groupon and all these sites will be their ability to data mine. And I understand Groupon is now going to be offering loyalty points for purchase which will make all those customers feel even more connected to the Groupon brand and even less loyal to the stores so eager to give away their profits. Thanks for stopping by.
Companies do not become “media darlings” for no reason. We need to always be aware of the big picture and look at what a company is actually DOING and not at what they CLAIM their motives are!
Great series of articles, Bob.
You made me read all 11. I have never heard of you before today, but you got my attention. Well done.
I can honestly say that you appear to be a lone wolf in the anti-Groupon crusade, and just the kind of guy I was looking to hear from.
I am also amazed at the financial myopia that Groupon has crushed small businesses with. The toxicity of building a client base on the backs of 50% discounts and 75% reductions in revenue is laughable, and yet rounds of praise fall on the backs of these Groupon-esque sites.
Crazy.
Thanks again for your insights. You should write the book on this, and blow the whistle. If you don’t maybe I will.
Someone needs to. And you could sell some books, and pay the mortgage at the same time which as you said, is very important too.
Well Bob,
I see a lot of the blame game going around but no real solutions. I have worked in print, tv, radio, and online. For years people have objected to that style of advertising saying they cannot track their results and do not know what their return on investment was. They have argued that no one reads, listens, or logs on. They have said I cannot afford to write a check for that. Now, Groupon comes along and answers every single one of those questions. You will be sent out to X amount of people. If you sell X, it will cost you X. There is no cost upfront as the only cost you realize is when someone PREPAYS to walk through your door.
In all your obvious wisdom, show me a medium that offers an inkling of that. You simply cannot. Quite frankly I am tired of all the “experts” finding faults with advertising mediums, but offering little else. What defines an expert….negativity?
I have competed with the likes of Groupon. Businesses have advertising budgets (those who dont and tell me they dont should simply close their doors). Instead of placing ads or running banners or radio spots “that dont work” those dollars simply get converted to cover the deal they are offering. If I am a business owner and I wanted to reach 80k+ potential customers, whether they are deal hunters or not, and it will cost me X of whatever I sell, sign me up.
And I am also tired of snobbish owners bad mouthing people who dont come back. I often try nice places if they are offering a good deal. I have tried some great places that I still frequent and some god awful places that I would go back to even if I got a better deal. These business owners need to open their eyes. Maybe you are the reason people dont come back. Your food may be crap, your menu/services over-priced, or your service was just terrible.
97% of businesses say they would do it again. But shhh, you want to focus on the 3% with bad experiences. Im just sad I didnt think of the idea first, maybe that is where your negativity is from.
Brad you hit on the solutions at the end. You want business, you give them a reason to return. You don’t give your profits away to a company targeting the dirt-scratchers in the “hope” someone, somewhere will return and make up that profit you gladly gave away.
Hey Bob,
Thanks for the great series of articles! In addition to the infamous Dana Dawes Photography Groupon scam, we had another photographer sell almost 2000(!) one hour portrait sessions for $49 each: http://www.groupon.com/deals/sarah-esther-photography-atlanta
Once Groupon takes their cut, she is left with $25, to plan the shoots, take all the calls/emails, drive to the location, make the photos, download, edit, burn them to disc and mail them to the client. Wow. Add wear and tear on the equipment, too. It’s unreal! -Parker
You missed 99% of the argument. You keep focusing on “profits” Profits profits profits. Campaigns such as this utilize budgets that are slowing being pulled away from traditional media outlets such as the one I work for. Great companies know how to draw people in. Everyone’s money is green, whether they be a dirt scrather, as you so eloquently and arrogantly pointed out, or wealthier customers. Business owners that look down upon and treat people differently on what they pay ultimately find themselves with empty tables and shelves full of merchandise. Business is changing. Customer loyalty is a thing of the past. If an owner is naive enough to believe that everything they do is better than the compeition, much like a home owner thinks his house of wood is better than his neighbors, needs to wake up. The perception of value lies in the customers wallet. More than half the owners I deal with have no idea how to market themselves, retain customers, or bring new ones in. They only know how to be cheap and complain that the economy sucks and no one is spending any money, all while protecting “profits” they arent really making.
Brad, I don’t agree money is money. If something costs me $50 and I receive $23 that is charity, not retail. If anyone is snearing at businesses it is you Brad. Loyalty is not dead. Value is not in the customers wallets but the businesses. It is offensive to me to hear people hawking these sites and then telling business owners to “deliver an exceptional experience” for people only out to “take” from the business. No, not all customers are ones worth having. Thanks for stopping by.
Bob, I really appreciate the work and research you have put in to creating this set of articles. Education is the key is so many issues like this, and if you can educate business owners to really look at who wins from these deals, then I think it is invaluable.
Bob,
Thank you for informing the small buinesses about Groupon. I absolutely agree with you. The only one making a profit is Groupon or other social media sites on the backs of struggliing small business owners (afterall these are the ones that are turning to these sites in hopes of bringing in new customers). By the way they also charge the business owner for credit card fees incurred etc and or taxes involved in the tranactions, as well as taking three months to pay the business owner.
Groupon reapeatedly and aggressively called me and when I declined they told me they would call my competitors!
I was very happy to find your site (which confirmed my view of Groupon)and share it with my fellow franchisees who may be tempted to use these social media sites with devasting results. Thank you again for sharing your business expertise with us.
good series of articles, I wish more people would become aware of the dangers of couponing (this isn’t $10 dollars off- it’s giving away your services) I run a fitness class, and I am suffering due to the coupon activity in my area, I own a franchise and I can’t get my owner to understand that a groupon deal will cripple us, she thinks we should run it. I personally know of a fitness studio,
a yoga studio and spa that are going out of buisness because of running the coupons, they have to honour them, and have no time or space to accomodate regular customers, plus they felt they had to offer the discount to their current clients. the yoga studio pays $50. to the instructor, while they are esentially getting .25 per participant from the coupon. They can’t pay their rent. This woman is a single mom trying to support a family. , meanwhile groupon are millionairss collecting off of her sweat (and tears)
I’m glad I found this post before I took the noose on Groupon. Bob raised more concerns to my attention and put the short reward on the backburner. It totally makes sense. Take care of your customers who have given you business first. That’s what I’m going to do. Easter is coming up so I will be messaging all my previous customers to see if they want to take advantage of a good package like 35% off. That way I will be getting my name out there with the help of my previous customers who swear by my work and still get something out of it.
Not only that, but my previous customers wont ask “why are they getting a cheap session when I paid you the full price”. It makes sense to me, it’s all being fair to your customers. Groupon is not the way to go for me.. I’m a photographer and I was just looking on the short term without giving any consideration.
Thanks Bob for slapping me into reality.. I normally am the person who says “but they” and fill in the blank. I never give up in a debate but hands down Bob shows the reality in this dangerous consumerism and I have no rebuttal. I think some people are missing the point altogether.
The points that I got from this, (1) If you are selling a service or product for half your normal price – then people will question your pricing structure and loose interest for paying the full price. 2. it’s not your customers, its Groupons – good luck in converting enough to make it worthwhile. Very slim chances you will due to most Grouponers are looking for that next big deal, NOT YOU!
Like Bob, I would like to see your books on such a crazy deal on how much stress it actually put on your business at your cost. Just saying…Also, I need to get some of your books Bob. It will definately be an investment to me.
What a really great series, thank you! I own a fitness franchise, and my franchisor recently did a Groupon offer. I was very much pressured into “going with the flow” by the company, and I can say that I will never do it again. It brought people to my door, sure, but they weren’t good prospects for my services. One person actually signed up with me after her Groupon expired, but I had to offer her a deal (waived the registration fee, and gave her my lowest monthly price without a contract) to get her.
Now, just one month later this customer is already threatening to quit if I don’t let her friend come and take a class for free. I’ve never offered a “first class free” unless I’m doing an open house, or a limited-time offer … but the groupon customer already “devalues” my services because of the groupon deal she came in on.
I suspect she’ll quit within the next month so she can move on to the next great deal.
Bob,
Great series. I was thinking about trying one of these discount coupon sites, but have changed my mind. I don’t want to be overwhelmed, have to provide a diminished service because of pressure to fill orders, and work for slave wages in the meantime – all for a customer who will probably not buy my regular priced service.
Thanks!
Bob,
Just bought your book after finding the site last week.
I don’t own the kind of business that would ever use a site like Groupon but, if I did I would like to think I’m good enough at math to figure out what a crushing blow it could potentially deliver, even to a healthy business.
I can’t help but believe the business owners who evangelize Groupon and other places like it and keep saying, “May I have another?” are of the same mindset as those who believe spending several million dollars of their ad budget on a 30 second Super Bowl ad is a good value. Never underestimate the stupidity of people in groups.
I’d also fathom a guess that most of them really have no idea what the lifetime value of their customers might be. They may not have any idea how to even calculate it or, if they do know how, they don’t have enough information on any of their customers to track it.
The thought of calculating the cost of acquiring new customers vs. keeping current ones and reactivating former ones likely escapes them, as well. Perhaps some people should just work for others who have a handle on such things. Of course, you can’t tell them that, at the risk of offending their fragile sensitivities.
I’m a believer in Karma, at least to the extent that you get what you deserve and if you put out good, you get good in return. That is absolutely true when it comes to any business, either selling products or services. Loyalty goes to the business that provides the best products, services and experiences to its customers.
I am fiercely loyal to the businesses where I am made to feel appreciated, not by being given a cut-rate price, but by being given value, service and being treated as if I am, at that moment, the most important customer they have. I go out of my way to evangelize those businesses to others.
I’ve never bought a Groupon and never will. Even before finding your site and your book, I questioned the wisdom of a business that would use such a thing. It always made me see the business as slightly desperate, having to cut their prices so much just to get people to notice them. It’s actually a little bit pitiful, really.
Thanks for the great site and all the good info. I’m looking forward to begin reading your book as soon as I mash the “submit” button!
I want to make a case for not throwing away the bath water with the baby. The truth is that there are not a lot of “I want to pay the full price” customers to go around. If you choose the right daily deal site and structure your deal well, you will do okay.
Here is a link to my article on structuring your deal: [Ed:removed]
What we retailers need is validated solutions for the dearth in sales and not just rants devoid of solutions.
A website that by nature is promotional shouldn’t be offering tips Bola. A simple search of your business name and “deals” revealed $10 for $20 worth of books on FamGrab, $7 for $14 worth of books on Dealpop and others including Macaroni Deals – one even including $10 free shipping if they sign up. Your “tips” that retailers should “offer at least 50% off, negotiate for payment terms and their ‘cut,’ structure for slow moving items – which you yourself don’t do, stock up and hire temp help, collect emails for NL and how great it is to get dedicated advertising for one day are nothing new. My posts were hardly a rant but squarely aimed at bricks and mortar retailers, restaurants and service providers who are not “deal” oriented in the first place. The ones that give Main Street a great name. The ones most likely to hear the siren song of the online discount deal sites. Thanks for stopping by.
[...] don’t have to look very far on the web to find stories of disgruntled retailers, spa owners, restauranteurs, and even photographers who have been stung by a Groupon promotion. [...]
Groupon is the worst business decision I have ever made. I was fully aware that there would be no profit from the actual sale of the certificates. I had to discount a regular priced service 50% then groupon takes half of that. Oh yes and Groupon makes me pay for the credit card processing too. Oh yes, They also lowered the price and increased the discount to about 67% when they ran the offer without my permission. So after credit card processing fees we get about 16.5% of what we would get at regular price?
I still had faith and tried to make this Groupon experience work.I sucked it up. I understood that with paying my staff and for product I would be in the red on each service but it would be worth it if the clients came back. If the clients purchased additional services or even tipped the staff like regular paying customers do, it would be ok. We would make the very best out of this because if we get them in the door, we will make them see what great services we offer and they will return! We were going to work extra hard to make this be a good experience.
This did not happen. The majority of the Groupon clients are regular clients of GROUPON and go where the next GROUPON deal is. Tipping is rare and they don’t care if you get upset as they have no intention of returning anyways. Some even stated that they NEVER pay full price for spa services. They have become professional Groupon buyers. What Groupon was and what it is now may not have changed but it has changed people. There is this huge Groupon, Livingsocial ect mass of consumers who regularly purchase these deals for food, entertainment and beauty services. This is how they live, save money and get what they want. The problem is that businesses like mine are seeking return clients and profit. We want you to experience our great service and products so you will want to return. These professional spa hoppers are not looking to become loyal customers. They are loyal customers of Groupon deals.
So now that our Groupon deal has calmed and we can’t wait for those certificates to expire, I see how badly this deal harmed my business. No one wants a Groupon client on their books. Groupon clients are avoided by staff. The Groupon client is not treated as well as a regular client. Even if we offer our own 50% off discount, the clients we get from ANY other source,prove better returns. Staff now views Groupon people as a waste of time.
I had really hoped it would be a good deal.
Now, I can understand your frustration from business owner point of view. Let me show you my frustration as Groupon customers.
I am not regular Groupon buyer, as a matter of fact; my wife bought all of them. My experience of using Groupon deals is bad, bad, bad. First of all you are treated as a nuisance, businesses lie about availability for booking, trying to force you to use the coupon in the worst time possible, never let you book for popular hours when they know they would have regular customers.
Then, when you eventually get through the door they show you their full disdain, treating you like poor relatives – no wonder they do not get tip. In one restaurant they sat us in the passage, at tiny uncomfortable table, with servers bumping into us (the passage was very narrow). I overheard them referring to this table as Groupon table. Of course we left and of course we lost the money we paid for the Groupon. And do not expect me to go to this business ever again. And it’s common like hell. So do not whine, people treat you the way you treat them.
But now, the worst part of Groupon deals comes: recently more and more businesses treat Groupon customers as a source of 0% credit – they sell you Groupon coupons for some more expensive merchandise, you pay upfront. Then they delay and delay with delivery, and after six of nine month they e-mail you that they are unable to deliver and return your money. Nice! No need to go to bank, no need to prove business credibility and free money for several month. And there is more and more of this scam.
So bottom line: after being treated as nuisance, after a couple of impossible to redeem coupons and after 2 instances of being treated as a source of free credit I am done with Groupon and its clones. It may be discounted, but it is not free, and well, nobody forced a business to offer discount – and if you offer it, honor it, otherwise you get a lot of nasty reviews on the net.
So, to sum it all up, these coupons are no good to businesses, no good to customers, they are good only for owners of Groupon company.
Hey Bob,
Thank you for pointing out the pitfalls of doing a heavy discount deal with these advertising companies.
I was approached by LS this year. I sat there and listened to the sales person. I took notes and jotted down the simple calculations that reduce my revenue down to near nothing before my other costs of doing business were even subtracted out.
My question to other business owners is how can you not do the simple math that is necessary to see if any promotion is the right or wrong thing to do.
I operate a carpet cleaning service and it’s no different than a retail merchant, we are all trying to make a profit. If the deal is not a win\win\win, that being customer\merchant\advertiser then why do it.
I know I can not pay my other costs with the little bit of revenue that is left after advertising costs so for me its not a win. Deal was to be scrapped. But I figured okay lets look at a little more.
Now all the numbers put aside I considered the upsell, the repeat customer, and the discounting that people would expect in the future based on the Groupon\Living Social deals being run. For my service business customers return about every 18 months. That’s an average and its acceptable because of the type of business that it is.
I calculated the average upsell and determined that it is not going to be enough to make up for the costs of doing the advertising deal.
After 18 months a discounter is most likely not going to come back to my business unless I have another big discount again.
Discount customers are going to remember how they got such a good deal the last time and they are going to try to find that sort of deal again.
Merchants, this is not that hard to determine. A bad deal is a bad deal. Talk about a society headed for disaster. If the good merchants make mistakes and can’t figure this out they will most likely be out of business.
If your revenue is reduced by discounting, advertising and cc fees to the point that you have less than 25% left and you can’t pay the bills that support that business then you probably have a broke business.
My only question is, when will the majority of these businesses be broke so that we can get back to real basics of making a profit and delivering outstanding quality service and products?
No, truly I do not wish businesses to be broke. I just want other merchants to stop de-valueing the products and services that we provide. The price of our services and products were set where they were because we need the revenue to pay the bills that support the business and therefore provide for the customer.
As a small business who took a chance and saw Groupon as a way of marketing, we got slammed. We were assured that the Groupon demographic was young. in-the-know and a great customer to attract. What we found the very next day was a Groupon customer who only wanted a deal.
And despite stipulations saying it was 1 groupon per table per visit, we had NUMEROUS patrons feel it was not applicable to them. We had patrons who said they bought the Groupon and flew in from across the country for one specific weekend and why couldn’t they get a reservation? We had patrons who felt they didn’t need to tip or pay the sales tax.
Our staff became frustrated. Our service suffered. We got “yelp-raped” within the first weekend.
And of course, EVERYONE freaked out that the groupon was expiring and didn’t understand why even though they had 6-months to do so, why couldn’t they redeem the Groupon all on the very last day of the offer?
All in all, one hell of a experience that simply just did not pay off. Does anyone know of a Groupon Merchant forum???
So few merchants are opening up about their experiences with these sites, my guess so as not to upset the Grouponers who used their discounts. Thanks for sharing yours and hopefully others will learn from your actual experience, not the “hope” of bringing in profitable customers.
[...] I hope this tells you what I think about Groupon, but don’t take my word for it. Check out The Retail Doctor’s blog for a lively discussion about Groupon. I hope this [...]