Something Groupon This Way Comes

March 11, 2011 § 2 Comments

Have you heard of Groupon? Each day the company offers one group coupon in the market it serves. If enough people agree to purchase the coupon, the deal is available for everyone to use.  If the minimum is not met, the Groupon becomes void.  Last month, there was a Groupon offered for a favorite Thai restaurant in the Short North, Basil. I believe the deal was $10 for $20 worth of food.  I was quick to purchase – my boyfriend and I were sure to go to Basil within the six months that the Groupon was valid.  Groupon is a win-win for the consumer – your coupon makes a low-risk venture of trying out a new business or service, or saves you money on a place you already like to go.

Since I work at ECDI, I have always been curious about how worthwhile Groupon participation is to the small business owner. While it can certainly direct a lot of eyeballs to a website, and feet to a store, is it always a good deal for the business owner?

Some things to keep in mind is that for deals where the consumer pays less than $10 (for example, $5 for $12 worth of coffee), Groupon typically keeps 100% of the money. Additionally, the business owner has no control over how many Groupons are sold, meaning that the volume of Groupons bought could be more than a small business can handle.

Groupon can be a great longitudinal investment in the visibility of your business, but make sure you’ll be able to keep the lights on after the foot traffic dies down.

For a small business owner in Portland’s take on the Groupon experience, click here.

For more information about Groupon, click here.

Edited to add: In Columbus, Groupon takes 60% of the cost of each Groupon.

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§ 2 Responses to Something Groupon This Way Comes

  • Walker Evans says:

    Fudha.com is a great local alternative to the national deal-of-the-day sites. Additionally, they give $1 for every gift card sold to the Mid Ohio Foodbank, and have donated over $13,500 to date.

  • Amy Szabo says:

    I was excited about group on when I first came out but have since unsubscribed because it seemed to be moving away from local biz to providing discounts to chain stores like Barnes and Noble. And to piggyback on Walker’s comment, SBB’s Big Deal is another local alternative to the national sites. And I’m not even going to mention the superbowl ad…oops, I just did!

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