Sunday, June 8, 2014

What is the beneficial aspect and disadvantages of Groupon?

What is the beneficial aspect and disadvantages of Groupon?
The disadvantages for (for businesses I'm assuming):
You're discounting your product or service by 25%-50%Then your splitting that by at least 30%Your split of any volume generated if you're a restaurant is almost always going to be 50%; due to the average high profit margins for food
The advantages are
You're using a huge database of email/facebook profiles; Groupon has millions of emails and facebook profiles for any given specific marketYou're getting your business in front of a lot of people at one time
My advice is to do the math and see if it makes sense, if you have a lot of return visitors take in account the lifetime value of each client into your math.

Also take into consideration of the sheer volume of customers within a short amount of time that are going to be knocking down your doors. Can you handle 1500 customers in one day?

etc., etc.,

A lot to think about; best thing to do is find a similar business in a different market that has done a Groupon and ask them what their opinion is.

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