walkman - 2:38 am on Jun 5, 2011 (gmt 0)
Here's all the math needed for Groupon:
Service costs $100
50% OFF to entice users makes it $50
Of that $50 left, Groupon takes at least $25 (some say they also take CC fee)
So we have a business giving a $100 service for $25 to attract 'customers.'
Do you want those type of customers?
Will they pay $100 or $75 next time to be worth for you?
If you can make money by giving a $100 service for $25 then something stinks with your pricing.
Bottom line: this is an Ok business to make some money and run or for local newspapers to augment advertising revenue but not to be worth $20 Billion.