They did a nice job of trying to frame the problem, but they are dead wrong.
"Traditionally, the biggest problem for most small businesses is getting customers in the door."
Actually, the primary concern of most small businesses is keeping the doors open.
Once the doors are open retailers have two things they need to maintain:
1. The number of customers
2. The amount of money the average customer spends
Groupon is a bad deal for retailers because it puts all of the emphasis on #1 at the expense of #2. Obviously that is what happens with any discount promotion, but when is the last time you saw a "75% off everything in the store" promotion?
Groupon's terms are too greedy and it will be their downfall unless they change it. It is way too easy for someone to come behind them and just offer better terms to the businesses and run Groupon out of town (without businesses Groupon has no benefit).
The company offering the best deals from the most desirable places will win the daily coupon market.
Comments
They did a nice job of trying to frame the problem, but they are dead wrong.
"Traditionally, the biggest problem for most small businesses is getting customers in the door."
Actually, the primary concern of most small businesses is keeping the doors open.
Once the doors are open retailers have two things they need to maintain:
Groupon is a bad deal for retailers because it puts all of the emphasis on #1 at the expense of #2. Obviously that is what happens with any discount promotion, but when is the last time you saw a "75% off everything in the store" promotion?Groupon's terms are too greedy and it will be their downfall unless they change it. It is way too easy for someone to come behind them and just offer better terms to the businesses and run Groupon out of town (without businesses Groupon has no benefit).
The company offering the best deals from the most desirable places will win the daily coupon market.