Groupon, a combination of the word 'group' and 'coupon' launched their original website in 2008. Groupon states the name originated from a city in Switzerland named Groupon, where Goodyear tires are sold at heavily discounted rates. Groupon strives to allow people to enjoy things in their community at a discounted price. Each city featured has a different daily deal. Numerous imitator sites have formed off of the Groupon concept.
How Groupon Works for Consumers
Groupon offers a major coupon to consumers in every city it covers on a daily basis. The coupon deal becomes valid only if a minimum number of people sign up for it. Groupons generally feature a deal on things to do in a community, places to visit, services to buy, or restaurants to enjoy.
Simply sign up on the Groupon website and if a bargain is of interest, click "BUY" before the offer ends. If the minimum number of people sign up, the credit card on file will be charged and a link will be sent to print out the Groupon.
If the minimum number is not met, the Groupon will be canceled and no one will get the Groupon deal that day. Charges will only occur once the Groupon has reached the minimum requirements.
How Groupon Benefits a Business
Groupon can guarantee a business paying customers since a minimum number of people must purchase the offer. Groupon states the average customer will spend 60% more than the value of the Groupon.
Groupon does not charge the business any costs upfront. Groupon makes money by taking a piece of each Groupon sold.
Exposure on Groupon will attract new customers for the featured business. Only one business per city is featured daily. The business will be exposed to subscribers nationwide.
Examples of Groupons Featured
Groupons will vary from city to city. The miniumum number of Groupons needed and the current amount purchased will be displayed along side the offer. Examples of typical Groupons include:
- $6 for one ticket to a current Auto Show ($11 value)
- $5 for $10 worth of food at a local restaurant
- $15 for $30 worth of food at a local restaurant
- $15 for $30 worth of flowers at a local florist
- $40 for $80 worth of spa services at an area spa
- $15 Mani-Pedi at a local nail salon ($37 value)
All Groupons will feature the cost for the Groupon, the value of the Groupon, and the percentage of the discount.
Considerations Regarding Groupons
Local businesses featured on Groupon report increased sales and revenue when their business Groupon becomes valid. Customers trying to redeem certain Groupons, such as a manicure or spa services, may have to wait for an appointment if a high volume of Groupons were sold. Popular Groupon deals may sell out quickly, customers should check in the mornings to ensure they will be able to get in on the deal.
References:
1. Groupon.com, "Groupon Deals" accessed April 27, 2010
2. Business Insider, "Groupon" accessed April 27, 2010
Sandra Blake - Sandra resides in Ohio. She attended the Academy of Health Sciences and Columbus State. She has years of experience in health information ...
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