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Groupon, Inc. Message Board

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  • daytraderwon daytraderwon May 4, 2012 8:19 AM Flag

    GRPN was going BK pre-IPO!

    Beyond it taking 11 pigs to bring this sick puppy to market this is the best part...

    "Also remember that 95% of all merchants who use Groupon never come back. That means the company must replace almost all of its business all the time. That’s a very tough model and why they are no longer growing. First they insist the merchant offer his goods or services for half price. Then they charge 40-60% of the coupon value for what they are doing to promote his business. A service that might normally be $100 is marked down to $50, they take half of that, so the vendor gets $25 for the $100 service. After his costs for rent, labor and materials, he loses money. Since, he is highly unlikely to ever get a repeat customer, he simply stops doing it. As for the customer, very often the coupons you receive are for good deals that are not convenient to where you live. If it is cheap enough, you might go once but you don’t go back. You just look for the next discount offer"

    Just incase people don't understand the Biz. Some think this is someting else and the facts need to be shown.

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