Groupon made to improve 17th March 2012 6:23 AM
For the right business Groupon can work.
The cost of supplying the product or service must be small as the percentage the business gets from the offer price is only about 40%.
The key is to have a sell up once the Groupon 'client' there. e.g. paintaballing where most people buy extra paintballs at normal price and the marginal cost of having people doing the gig is low.
I know a photographer who does it too and again the selling up is the key. He is careful not to offer to many gigs and that there are times when the offer can be used so it is done to suit him.
The cost of supplying the product or service must be small as the percentage the business gets from the offer price is only about 40%.
The key is to have a sell up once the Groupon 'client' there. e.g. paintaballing where most people buy extra paintballs at normal price and the marginal cost of having people doing the gig is low.
I know a photographer who does it too and again the selling up is the key. He is careful not to offer to many gigs and that there are times when the offer can be used so it is done to suit him.