Groupon...Is it good or bad for your business?

I have been doing a lot of reading this month. Reading articles,e-books and white papers on Retail and Social Media is a big part of my job as a Retail Consultant. Most business owners are far too busy operating their businesses to do a lot of reading. I summarize and present the information I think the owner needs to know.

Are you familiar with Groupon? I learned about it through an interior designer friend of mine. It looked like fun. Money saving coupons in your in-box. Only good for 1 day! I signed up. But lately,the 'deals' seem to be getting more and more outrageous.

Today's 'Deal' is a great example:
ONLY $149 for an In-Office ZOOM Teeth Whitening treatment! A $450 Value!! OR...$69 for an at home Teeth Whitening Treatment, a $250 Value...a 72% DISCOUNT.

I don't know about you...but I simply don't believe this. Not one word of it. I was a retailer for almost 20 years, and the one or two times I offered something at a 60% discount...I lost money for months! The REASON I offered the discount as a last resort,was to clear stock very late in the season that NOBODY wanted. Wool sweaters in July. Regular price $89.00 Sale price $19.99. I still SHUDDER at the memory.

If these dentists want to offer a discount on teeth whitening, do they pay their hygeinists 72% less wages to perform the treatment? WHY is teeth Whitening ON SALE in the first place? Is the treatment flawed in some way? If I purchase this 'DEAL', will I be able to use it in a reasonable amount of time? Will the hygeinist doing the treatment use only 1/2 the product? Do You Care? Or do you think that the original price of $450 was SO artificially inflated, that $149 is probably closer to the REAL price of the treatment?

If you are interested in reading a fascinating 11 part series on Groupon, complete with real case studies, and pages of comments, pro and con...visit Bob Phibbs Blog. He calls Groupon the Worst Marketing for your local business. Here's a quote:

" Just because millions of merchants have fallen under the spell of Groupon, a PR juggernaut, and their like, it doesn't mean you should. It's a killer alright. a profit-killer." Bob Phibbs-The Retail Doctor

Remember what your mother told you about following your friends off a cliff? This series is eye-opening...and demonstrates what happens when you don't adhere to the old adage, 'if it sounds too good to be true, it usually is.'

I would appreciate your comments. If you need an opinion before signing on with Groupon...I would be happy to speak with you. Before another Retailer gets hurt!

http://www.retaildoc.com/blog/groupon-worst-marketing-business/