Suddenly, Groupon become a bad company after its IPO plan announced, while it was a fastest growing company and Google was planning to acquire it just few months ago. How come?

Basically, I think Groupon is nice idea. Its main concept is to sell coupons, which used to be given by free. It’s a better business when you can make money, isn’t it? However this is the point of view from Groupon as a company.

But when you are a business owner or a customer, that’s another story. Not every business is meant to be increasing business by giving(selling) coupon to customers for them to try your service/products. Restaurants (most Groupon deals are restaurants) are one of these business. Most of customers, like me, just buy groupons for trying something new. Chances are they don’t come back to the restaurants. Gyms as well as other Yoga, Boxing, or Rock climbing may have chance but may not be benefited by Groupon deals too. Guess who will purchase these groupons? I bet not those who have already had constant exercise hatbit. However, most of these deals are merely one-month membership. And I think one month may be not enough to build up the customers’ constant exercise habit.

So, on the other hand, what’s a good deal, I mean for both the business owner and the customers? I am thinking something with membership so that the customers will continue to pay (or forget to stop paying) and something that customers will stick during the trial period.  As far as I know (forgive me that I don’t know much though), zip.ca, a Canadian mail rental DVD service is this kind of business. I found the deal few months ago on Groupon, in which I got 3 month trial, with 3 DVD out at most and unlimited DVD rental a month. The groupon price is CDN $15, while the original price is around $50 (that is, with the same plan, $24.95 for two months plus one month free trial, which is always there for new customers.) I strongly feel that I should try this service when I saw the deal. I even recommend my friends to purchase the deal. I am satisfied. And I believe zip.ca too. (I supposed the deal earning should be able to cover the cost of these newly joined customers. At least, zip.ca won’t lose too much.)

However, again, how many businesses are suitable for using Groupon to promote them?


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