weeks - 4:58 pm on Jun 5, 2011 (gmt 0)
Not really. The price on many products and services are determined by the value to the customer, not what the provider has put into it. Take books, for example. You print 10,000 books at at cost of $2 per. You sell 5,000 at $20. It's worth $20 to 5,000 people. You make $70,000 and you still have 5,000 books. What is the price you're willing to put on those books?
If you can make money by giving a $100 service for $25 then something stinks with your pricing.
There are a LOT of firms with fixed costs. Groupon works that fact of life. I think they are providing a worthwhile, needed marketing service. It's a good biz. But, they have to earn it every day.