Is the Group Buying fad coming to an end?
Company's need to spend money on marketing. So this is a percentage of sales, maybe 5%, maybe 50%. Groupon take a huge chunk of money. If you charge €500 for Website Design. They sell it for €250 (50% Off), give you €125 (50% Off) and keep €125. Company's run away from this as they lose too much money. So Groupon is left selling Kite Lessons, Facial Massages and Helicopter Rides with Prosecco. Not exactly items you would purchase during a normal day.
Groupon says the discount offered is because you are buying in bulk. But surely this is what Tesco, Aldi, Lidl, Facebook, Google and other marketing company’s have offered for years, a market to the masses to buy more, more than they would probably buy on Groupon.
Voucher Page Websites
Simply regurgitate the offer you get on the retailers website. For example, you search for Marks & Spencer Deals, Special Offers or Discounts. You click into a Voucher Website which brings you back to M&S. Spoiler alert – you will get the deal from M&S without going through the Voucher website. Ultimately, you are paying the Voucher Websites wages by clicking into their site using them as a middle man for a discount you were going to get anyway. Why would a merchant such as M&S pay outsiders for this? This money could be used to give an even bigger discount to customers.
As for Coupon Websites
Are you sick of searching for hours for codes that don’t work? Me too. End.
In Closing
I don’t see Groupon or others employing more people or growing in the EU or Ireland. Not because people wont buy, but because merchants won’t sell with them. I could be wrong. Are you a merchant? Your thoughts?