Comments on: The Groupon Effect – More Is Not Always Better

By: Sanovnik Destang

Sanovnik Destang — Wed, 07 Dec 2011 02:49:19 +0000

I agree that a lot of businesses do not run the numbers before launching a Groupon deal. Groupon can however work if you run a business with perishable inventory, low variable costs and high fixed costs such as a hotel and if you run it during a slow period and can put limits on it. As for the level of repeat business generated that depends a lot on the experience of the company itself. We have had mixed results with this but overall have not been unhappy as a 4 star hotel that has used Groupon. It has helped generate exposure and some repeat business. But you should not rely on this solely. I would not advise anyone to over-saturate the market with these kind of deals as it can hurt your brand long term. See my article on our experience at Bay Gardens Beach Resort, St. Lucia. http://hospitalitymarketingtips.blogspot.com/2011/11/groupon-effect-and-caribbean-hotels.html

By: How Groupon Is Robbing Mainstreet USA… | Matt Dubiel

How Groupon Is Robbing Mainstreet USA… | Matt Dubiel — Thu, 02 Jun 2011 20:52:44 +0000

[…] what if lots of people buy? What’s this “Groupon Effect” people are talking […]

By: Bob Phibbs, the Retail Doctor

Bob Phibbs, the Retail Doctor — Thu, 28 Apr 2011 03:51:51 +0000

Those posts have been expanded into a book, “Groupon: Why Deep Discounts Are Bad For Business” http://www.retaildoc.com/store/groupon-review-discount-business-model-livingsocial/

By: Rob Mangiafico

Rob Mangiafico — Tue, 28 Sep 2010 19:46:05 +0000

Great series on your blog Bob. It really brings to light the harsh realities that can occur when unsuspecting small businesses jump into a Groupon deal without a lot of thought.

By: Bob Phibbs, the Retail Doctor

Bob Phibbs, the Retail Doctor — Tue, 28 Sep 2010 18:39:22 +0000

Thanks for pointing out that businesses who are promoting Groupon do so at their own peril Rob. That’s why I wrote an 11-part series that culminated with this post about what the many issues at http://www.retaildoc.com/blog/final-coupon-groupon-small-business/