rogerd - 12:22 am on Jun 6, 2011 (gmt 0)
I agree, weeks, the service makes a lot of sense. I've operated a local retail business (as an offshoot of my old mail order biz), and traditional local advertising choices are brutally expensive and come with no guarantees. You can spend thousands of dollars on a big newspaper ad, radio campaign, or billboards, and get little back in revenue.
If I owned a restaurant and could guarantee, say, 300 new customers trying out my business, I'd take the "loss" on a Groupon. (If I spent $5K in local ads, I'd have to dig out of that hole with hundreds of full price customers.) The better thought out daily deals for restaurants exclude alcohol, so there's an upsell opportunity. Also, some are low enough in value that most customers will spend some extra for a full meal. Thoughtful planning and not going crazy on the number sold are needed.
The big problem I have with Groupon is that they have no real barrier to competition. Clever copy is their secret sauce? Give me a break. I do read their copy sometimes, but in reality I mainly look at the deal - is it something I will use? Is the deal attractive?
I'm on about six of these lists already, and I don't really pay attention to which service it's from until I click the order button.