There is plenty enough written about the campaigns from Groupon (with 50+% margin on 50+% reduced offers) which detail how great it is for both the Groupon investors as well as for the shoppers. But how good is it for the participating merchants, service providers and restaurants?
Currently in the US, Groupon is seeing some hefty criticism from one restaurant owner which used Groupon’s services:
"Why Groupon has been the single worst decision I have ever made as a business owner thus far…"
Groupon founder Andrew Mason replied promptly to the accusations (“Too much of a good thing?”).
In the end, Groupon and their promotional campaigns sit in the same trap as eBay does: The more they squeeze out of their merchants, the better their own business results.
The question remains: How much greed can come into play until the win-win-win situation is broken?
Editor note: active commentary to be found on the German blog (GE/EN).
Related posts:
- Live Shopping Now A Tech Megatrend in Silicon Valley
- Groupon Takes Over Darberry.ru, the Next Otto Holding
- Groupon’s “Shady” Methods Questioned
Originally posted in German by Jochen Krisch, adapted for excitingcommerce.com by Jason Soo.
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