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.