I’ve noticed an uptick in recent months of the emails I’m getting from small businesses claiming that Groupon is threatening to sue them. I’m now starting to get about one of these emails a week. The latest sums up a lot of Groupon’s current problems:
I would like to share my experience with you as a groupon merchant.
My wife and I own a spa in Hallandale FL. We were contacted by a groupon rep who pitched the idea of us offering massage services for $35 vs the original $90 we charge our customers.
The rep told my wife we would sell around 400-500 vouchers. The deal only sold 215 but we were ok with that.
A few days later the rep calls again and says we want to rerun the same deal a few weeks from now but in the ft lauderdale area opposed to Miami. The second deal sold 322 vouchers.
Here is the problem. Its been 3 weeks since groupon was scheduled to pay us our first payment for the second deal. We have serviced 72 people free of charge! Groupon continues to give us the run around regarding payment. We got fed up and told the rep we will not continue to honor the deal without payment. His reply was to threaten us with a law suite. [sic] What should we do?
(I’ve contacted Groupon PR for a response. I will update this post if I hear back.)