SOWPub Small Business Forums  
 

Click Here to see the latest posts!

Ask any questions related to business / entrepreneurship / money-making / life
or share your success stories (and educational "failures")...

Sign up for the Hidden Business Ideas Letter Free edition, and receive a free report straight to your inbox: "Idea that works in a pandemic: Ordinary housewife makes $50,000 a month in her spare time, using a simple idea - and her driveway..."

NO BLATANT ADS PLEASE
Also, please no insults or personal attacks.
Feel free to link to your web site though at the end of your posts.

Stay up to date! Get email notifications or
get "new thread" feeds here

 

Go Back   SOWPub Small Business Forums > Main Category > SOWPub Business Forum
Register FAQ Members List Calendar Search Today's Posts Mark Forums Read

SOWPub Business Forum Seeds of Wisdom Forum

 
 
Thread Tools Display Modes
Prev Previous Post   Next Post Next
  #2  
Old October 4, 2015, 03:34 PM
Dien Rice Dien Rice is online now
Onwards and upwards!
 
Join Date: Aug 2006
Posts: 3,367
Default Re: How Does Groupon Work?

Quote:
Originally Posted by Chuck View Post
THANKS in advance for refreshing my memory!

A business owner told me how his groupon worked once, but I forgot.

I downloaded a Groupon, Valpak, and MoneyMailer app on my phone just to be more familiar with the local advertising competition.

It reminded me that I have forgotten how Groupon works.

I've heard horror stories of businesses being overwhelmed by response but complaining they're going broke.

The local guy I asked said it basically was used by existing customers so was not meeting his goals at the time, though I fail to remember our discussion of it's mechanics.

Does groupon keep 50% of the advertised price they collect?
Hi Chuck,

I also had to refresh my memory...

It looks like you're right. You have to give a big discount, generally 50% to 90% off. Then, 50% of the money you collect goes to Groupon.

When you do the math, it means you're only taking in 5% to 25% of the normal "retail" price, once you give Groupon their portion...

So, if you normally charge $24 for a fancy meal, you're only really taking in $6 or less for that meal! (E.g. a 50% discount means you take in $12, then half of that goes to Groupon, so you only get $6.)

Most businesses will not make money directly on these offers, and many will lose money. However, they hope to make money by introducing their business to these new customers, and getting repeat customers who will later be happy to pay full price...

Where I've read there is often a problem for these businesses is that - quite sensibly - many people just get the Groupon discount, then never come back....

Best wishes,

Dien
Reply With Quote
 


Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Forum Jump

Other recent posts on the forum...


Seeds of Wisdom Publishing (front page) | Seeds of Wisdom Business forum | Seeds of Wisdom Original Business Forum (Archive) | Hidden Unusual Business Ideas Newsletter | Hotsheet Profits | Persuade via Remote Influence | Affia Band | The Entrepreneur's Hotsheet | The SeedZine (Entrepreneurial Ezine)

Get the report on Harvey Brody's Answers to a Question-Oriented-Person


All times are GMT -4. The time now is 02:35 PM.


Powered by vBulletin Version 3.6.0
Copyright ©2000 - 2024, Jelsoft Enterprises Ltd.