Groupon faces an Angry Mob

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    I help you SUCCEED
    • Nov 2003
    • 32195
    #1

    Groupon faces an Angry Mob

    Don't fuck with trust... specially from groups.

    Source: http://money.cnn.com/2011/02/11/pf/g...lash/index.htm

    A day after Groupon offered $20 off of $40 worth of flowers and gifts from FTD, users are calling the deal a scam.

    The coupon, which nearly 3,300 people bought, directed buyers to a special FTD website -- FTD.com/groupon -- to take advantage of the offer. The problem, users said, was that prices were higher than on the regular website, effectively diminishing the value of the deal.
    Tags: None
    • DateDoc
      Outside looking in.
      • Feb 2005
      • 14243
      #2
      Sounds like an FTD scam but Groupon should have vetted the offer better.

        Comment

        • BJ
          Confirmed User
          • Mar 2002
          • 5590
          #3
          what a bunch of idiots, like people weren't going to check.

            Comment

            • DateDoc
              Outside looking in.
              • Feb 2005
              • 14243
              #4
              If you want a better deal than Groupon try http://www.lifesta.com which is a secondary market for coupons ppl have bought from Groupon et al.

                Comment

                • Ron Bennett
                  Confirmed User
                  • Oct 2003
                  • 1653
                  #5
                  On a related topic, for those who use Facebook as their forum platform, note all the spam!

                  There's the $67/hour spam posts along with all the link spam in the CNN article discussion thread - surely one would think Facebook's filters would catch much of that nonsense, but guess not. Anyways, Facebook's forum platform is junk - so limited and poorly laid out, but I digress.

                  As for Groupon - as many others have pointed out before, it's not overly unique - low barrier to entry to competitors.

                  It's no wonder some merchants use sneaky tactics to jackup the price, such as what FTD did, during Groupon promotions. Groupon is very expensive for merchants who, in essence, not only have to cover the discount they're offering, but also must send Groupon a cut of that ... a double whammy.

                  Ron
                  Domagon - Website Management and Domain Name Sales

                    Comment

                    • emjay
                      Confirmed User
                      • Dec 2004
                      • 4280
                      #6
                      Originally posted by Ron Bennett
                      Groupon is very expensive for merchants who, in essence, not only have to cover the discount they're offering, but also must send Groupon a cut of that ... a double whammy.

                      Ron
                      They don't need to, it's the other way round since Groupon collect the money. I Still can't quite believe that they turned down $6bn from Google, who will probably moving into the social group buying space anyway.
                      I Run 500+ WhatsApp Groups. The Zuck Owns Me
                      www.emjayconsultancy.com

                        Comment

                        • $5 submissions
                          I help you SUCCEED
                          • Nov 2003
                          • 32195
                          #7
                          Originally posted by emjay
                          They don't need to, it's the other way round since Groupon collect the money. I Still can't quite believe that they turned down $6bn from Google, who will probably moving into the social group buying space anyway.
                          They wanted to take the money but were worried about antitrust. At least that's what the VC buzz was...

                            Comment

                            • kazbalah
                              Confirmed User
                              • Jun 2007
                              • 1215
                              #8
                              6 Billion - Id take it and run. If anyone wants to buy my 2k / day link list for 2 billion ill take it
                              Link Directory Submitter - Forum Auto Submitter - Article Submitter - Simple SE submitter - Blog Auto Poster - 45 Wordpress Themes - Mis Spelt Keyword Generator - Auto Forum Submitter

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                                • Ron Bennett
                                  Confirmed User
                                  • Oct 2003
                                  • 1653
                                  #9
                                  Originally posted by emjay
                                  They don't need to, it's the other way round since Groupon collect the money. I Still can't quite believe that they turned down $6bn from Google, who will probably moving into the social group buying space anyway.
                                  The merchant has to further lower their price (well unless they plan to pull a FTD stunt) to cover Groupon's cut of the coupon. The merchant is paying.

                                  Ron
                                  Domagon - Website Management and Domain Name Sales

                                    Comment

                                    • L-Pink
                                      working on my tan
                                      • Mar 2005
                                      • 39151
                                      #10
                                      Don't tell me what I'm spending, tell me how much I'm saving.

                                      .

                                        Comment

                                        • DateDoc
                                          Outside looking in.
                                          • Feb 2005
                                          • 14243
                                          #11
                                          $6 billion is a lot of $$ but just over 1/3 of what they will make from their IPO this year.

                                            Comment

                                            • rowan
                                              Too lazy to set a custom title
                                              • Mar 2002
                                              • 17393
                                              #12
                                              Broadly related, some retailers have been caught making overinflated claims about savings during sales... the sale price and apparent savings added together are well over the RRP!

                                              eg product's sale price is $200 ("SAVE $500!") yet the RRP is $400.

                                                Comment

                                                • Klen
                                                  • Aug 2006
                                                  • 32235
                                                  #13
                                                  Originally posted by Ron Bennett
                                                  The merchant has to further lower their price (well unless they plan to pull a FTD stunt) to cover Groupon's cut of the coupon. The merchant is paying.

                                                  Ron
                                                  Howmuch exactly groupon is charging ?

                                                    Comment

                                                    • candyflip
                                                      Carpe Visio
                                                      • Jul 2002
                                                      • 43069
                                                      #14
                                                      Originally posted by KlenTelaris
                                                      Howmuch exactly groupon is charging ?
                                                      Upwards of 50% of the payment.

                                                      A friend of mine did a $16 voucher for $8 and Groupon got $4 of it. They made hardly any money on the deal.
                                                      Last edited by candyflip; 02-16-2011, 05:30 AM.

                                                      Spend you some brain.
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                                                        • DEA - banned for life
                                                          V.I.P.
                                                          • Nov 2004
                                                          • 7886
                                                          #15

                                                            Comment

                                                            • candyflip
                                                              Carpe Visio
                                                              • Jul 2002
                                                              • 43069
                                                              #16
                                                              As a side note, if anyone is in need of a job, Groupon is probably hiring a few sales reps in your area.

                                                              http://www.groupon.com/jobs
                                                              Last edited by candyflip; 02-16-2011, 05:46 AM.

                                                              Spend you some brain.
                                                              Email Me

                                                                Comment

                                                                • woj
                                                                  <&(©¿©)&>
                                                                  • Jul 2002
                                                                  • 47882
                                                                  #17
                                                                  actually many "deals" are like that, they make it sound like you are getting half price steal, but if you consider all the details, etc you maybe save 20%, not bad, but in many cases hardly worth the drama...
                                                                  Custom Software Development, email: woj#at#wojfun#.#com to discuss details or skype: wojl2000 or gchat: wojfun or telegram: wojl2000
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                                                                    • Cyndalie
                                                                      Confirmed User
                                                                      • Jan 2002
                                                                      • 3615
                                                                      #18
                                                                      Groupon is selling coupon codes only redeemable through an affiliate link. FTD is notorious for this, as is proflowers and other sites. You click on a sale ad to get a site where you can only use that coupon code.

                                                                      It flat out says "Post-2/14 option not valid until 2/15. Groupon value reduces by $20 on 6/16/11, except where prohibited."

                                                                      It also flat out said it's only valid at "the following website: www.ftd.com/groupon"

                                                                      Anyone knows that when you buy a coupon read the fine print and make sure the prices are in line with what you will be saving.

                                                                      People are dumb, the timing of the promotion was dumb, and I honestly don't think Groupon should be held at fault. The prices seem to be the same now between the 2 sites anyway.
                                                                      Cyndalie
                                                                      Marketing Director
                                                                      StoriesTraffic.com

                                                                        Comment

                                                                        • O MARINA
                                                                          I'm clockin' ya, Versace shade watchin' ya
                                                                          • Mar 2003
                                                                          • 13796
                                                                          #19
                                                                          Originally posted by KlenTelaris
                                                                          Howmuch exactly groupon is charging ?


                                                                          some 50/50 and
                                                                          60/40

                                                                            Comment

                                                                            • O MARINA
                                                                              I'm clockin' ya, Versace shade watchin' ya
                                                                              • Mar 2003
                                                                              • 13796
                                                                              #20
                                                                              Originally posted by DateDoc
                                                                              http://www.lifesta.com .


                                                                              never seen that before!

                                                                                Comment

                                                                                • Agent 488
                                                                                  Registered User
                                                                                  • Feb 2006
                                                                                  • 22511
                                                                                  #21
                                                                                  can see the whole thing collapsing once the bloom is gone ...

                                                                                    Comment

                                                                                    • jml23
                                                                                      Registered User
                                                                                      • Dec 2009
                                                                                      • 24
                                                                                      #22
                                                                                      groupon takes 50% and staggers payments out as well. It can seriously crush an offer and put some merchants in the red big time. I have heard some horror stories. Im sure it works for some.
                                                                                      ----
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                                                                                      Chaturbate.com

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                                                                                        • Klen
                                                                                          • Aug 2006
                                                                                          • 32235
                                                                                          #23
                                                                                          Holy Fuck 50% ?????Can someone explain what's a point of using them then?I mean,you already losing some money by giving discount on coupon,and then you need to give additional 50% ?I dont see a profit in that,especialy if you sell hardware goods where income is very little.But that would explain why they valued company to 3 billions.
                                                                                          Last edited by Klen; 02-16-2011, 10:24 AM.

                                                                                            Comment

                                                                                            • Agent 488
                                                                                              Registered User
                                                                                              • Feb 2006
                                                                                              • 22511
                                                                                              #24
                                                                                              if they acquire new customers and turn them into return customers may be worth it.

                                                                                              Originally posted by KlenTelaris
                                                                                              Holy Fuck 50% ?????Can someone explain what's a point of using them then?I mean,you already losing some money by giving discount on coupon,and then you need to give additional 50% ?I dont see a profit in that,especialy if you sell hardware goods where income is very little.But that would explain why they valued company to 3 billions.

                                                                                                Comment

                                                                                                • kristin
                                                                                                  GOO!
                                                                                                  • Sep 2002
                                                                                                  • 9768
                                                                                                  #25
                                                                                                  That was more than likely the florist and not Groupon.

                                                                                                  There was a Groupon for $25 for $50 worth of food at this really good Mexican restaurant. We used ours no problem the first weekend, the following week the restaurant shut down. Groupon issued refunds for them based on the honor system because they couldn't get the used ones from the restaurant. Let's see if they make good first.
                                                                                                  Vacares rules.

                                                                                                  "Usually only fat guys have the kind of knowledge and ability that Kristin has."

                                                                                                    Comment

                                                                                                    • DateDoc
                                                                                                      Outside looking in.
                                                                                                      • Feb 2005
                                                                                                      • 14243
                                                                                                      #26
                                                                                                      Originally posted by KlenTelaris
                                                                                                      Holy Fuck 50% ?????Can someone explain what's a point of using them then?I mean,you already losing some money by giving discount on coupon,and then you need to give additional 50% ?I dont see a profit in that,especialy if you sell hardware goods where income is very little.But that would explain why they valued company to 3 billions.
                                                                                                      Lets say you have a $10,000 advertising campaign to run. You can buy radio spots, ads in the paper but I doubt you could run a tv commercial for that amount. Now, instead of buying newspaper ads you put this money towards your Groupon campaign. Groupon emails a 100k people in your area (more or less depending where you live) letting them know about the deal and it is featured on the local Groupon site for the day.

                                                                                                      Your $10,000 newspaper, radio, tv ad will not bring in as many people as a Groupon campaign will. Plus, the cost of advertising is not upfront with Groupon. In fact you get to pocket money right off the bat but that will get eaten up as the Groupons are used.

                                                                                                        Comment

                                                                                                        • Klen
                                                                                                          • Aug 2006
                                                                                                          • 32235
                                                                                                          #27
                                                                                                          Originally posted by DateDoc
                                                                                                          Lets say you have a $10,000 advertising campaign to run. You can buy radio spots, ads in the paper but I doubt you could run a tv commercial for that amount. Now, instead of buying newspaper ads you put this money towards your Groupon campaign. Groupon emails a 100k people in your area (more or less depending where you live) letting them know about the deal and it is featured on the local Groupon site for the day.

                                                                                                          Your $10,000 newspaper, radio, tv ad will not bring in as many people as a Groupon campaign will. Plus, the cost of advertising is not upfront with Groupon. In fact you get to pocket money right off the bat but that will get eaten up as the Groupons are used.
                                                                                                          Aha so it's basically form of advertising.

                                                                                                            Comment

                                                                                                            • kristin
                                                                                                              GOO!
                                                                                                              • Sep 2002
                                                                                                              • 9768
                                                                                                              #28
                                                                                                              Originally posted by jml23
                                                                                                              groupon takes 50% and staggers payments out as well. It can seriously crush an offer and put some merchants in the red big time. I have heard some horror stories. Im sure it works for some.
                                                                                                              I asked the spa owner once how Groupon works on their side and she tells me the % and I asked, "is that on the price paid or the price overall?" and she said it all depends how good your negotiating skills are.

                                                                                                              Personally I love Groupon but I believe it is hindering brand loyalty and will mess with pricing for all services.
                                                                                                              Vacares rules.

                                                                                                              "Usually only fat guys have the kind of knowledge and ability that Kristin has."

                                                                                                                Comment

                                                                                                                • Abbie
                                                                                                                  Confirmed User
                                                                                                                  • Aug 2005
                                                                                                                  • 1004
                                                                                                                  #29
                                                                                                                  LivingSocial (similar to these sites) is in Hot Water here in WA:

                                                                                                                  http://www.king5.com/news/consumer/C...116280124.html

                                                                                                                  for having expiration dates on gift cards, etc.

                                                                                                                  These sites are going to burn themselves fast.

                                                                                                                    Comment

                                                                                                                    • candyflip
                                                                                                                      Carpe Visio
                                                                                                                      • Jul 2002
                                                                                                                      • 43069
                                                                                                                      #30
                                                                                                                      Originally posted by KlenTelaris
                                                                                                                      Aha so it's basically form of advertising.
                                                                                                                      Yep. In my example they sold about 1200 and I would guess at least 50% of them would be new customers.

                                                                                                                      Spend you some brain.
                                                                                                                      Email Me

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                                                                                                                        • DateDoc
                                                                                                                          Outside looking in.
                                                                                                                          • Feb 2005
                                                                                                                          • 14243
                                                                                                                          #31
                                                                                                                          Originally posted by Abbie
                                                                                                                          LivingSocial (similar to these sites) is in Hot Water here in WA:

                                                                                                                          http://www.king5.com/news/consumer/C...116280124.html

                                                                                                                          for having expiration dates on gift cards, etc.

                                                                                                                          These sites are going to burn themselves fast.
                                                                                                                          That lawsuit isn't going anywhere as it states on the site that if expiration dates are illegal in your state then there is no expiration date.

                                                                                                                            Comment

                                                                                                                            • lazycash
                                                                                                                              Troll Patrol
                                                                                                                              • Aug 2002
                                                                                                                              • 15214
                                                                                                                              #32
                                                                                                                              Originally posted by KlenTelaris
                                                                                                                              Aha so it's basically form of advertising.
                                                                                                                              Yes, generally considered a loss leader to attract new customers. However, depending on the creativity of the deal and its pricing, I've seen instances where I knew the merchant was still going to clear a profit even though they are basically offering their service or product for only 25 cents on the dollar.

                                                                                                                              There's a couple variables that also come into play that benefit the merchant, generally only 70-80% of the deal vouchers are actually redeemed, meaning the merchant was able to collect money without ever encountering an offsetting expense. Also, the merchant gets a nice chunk of money all up front after Groupon takes their commission. Since many of these deals don't expire for a year, a cash strapped merchant is instantly able to get a nice infusion of cash to operate their biz while deferring their expenses until the vouchers are redeemed.

                                                                                                                              I do fear though that its only a matter of time before an unscrupulous merchant uses Groupon to run a scam, by issuing an incredible deal, pocketing the cash and then closing their doors.
                                                                                                                              "WTF, on google you can find the answer to every question in human history, EXCEPT how to convert cams..

                                                                                                                              Its crazy..."

                                                                                                                              VenusBlogger

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                                                                                                                                • lazycash
                                                                                                                                  Troll Patrol
                                                                                                                                  • Aug 2002
                                                                                                                                  • 15214
                                                                                                                                  #33
                                                                                                                                  Originally posted by kristin
                                                                                                                                  I asked the spa owner once how Groupon works on their side and she tells me the % and I asked, "is that on the price paid or the price overall?" and she said it all depends how good your negotiating skills are.

                                                                                                                                  Personally I love Groupon but I believe it is hindering brand loyalty and will mess with pricing for all services.
                                                                                                                                  Its not going to introduce any new tactics that merchants haven't already employed for years. How about the store that has a 50% off sale, but marks up their products 30% before the sale to give the consumer a false impression of the extent of their savings. Also, merchants that run incredible deal ads and then use very fine print that limit the deal just so they can get people in the front door. Bottom line, its best to already have a good understanding of the product or service you'll be buying a Groupon for so you can immediately gauge how good of a deal you will be getting, and then make sure to read any exclusions that go with the deal.
                                                                                                                                  "WTF, on google you can find the answer to every question in human history, EXCEPT how to convert cams..

                                                                                                                                  Its crazy..."

                                                                                                                                  VenusBlogger

                                                                                                                                    Comment

                                                                                                                                    • O MARINA
                                                                                                                                      I'm clockin' ya, Versace shade watchin' ya
                                                                                                                                      • Mar 2003
                                                                                                                                      • 13796
                                                                                                                                      #34
                                                                                                                                      Originally posted by kristin
                                                                                                                                      I asked the spa owner once how Groupon works on their side and she tells me the % and I asked, "is that on the price paid or the price overall?" and she said it all depends how good your negotiating skills are.

                                                                                                                                      Personally I love Groupon but I believe it is hindering brand loyalty and will mess with pricing for all services.

                                                                                                                                      It is most definitely on the price paid

                                                                                                                                      also 30% of coupons purchased are never even redeemed.

                                                                                                                                        Comment

                                                                                                                                        • $5 submissions
                                                                                                                                          I help you SUCCEED
                                                                                                                                          • Nov 2003
                                                                                                                                          • 32195
                                                                                                                                          #35
                                                                                                                                          Groupon's main use for small businesses = publicity and getting the word out. Don't count on it to make actual money off the deals.

                                                                                                                                            Comment

                                                                                                                                            • stereolab
                                                                                                                                              Confirmed User
                                                                                                                                              • Mar 2004
                                                                                                                                              • 798
                                                                                                                                              #36
                                                                                                                                              all this sounds like a setup. they are about to go IPO, right? big liquidity events like that make you easy, low-hanging target for lawsuits - especially class action horseshit like this.

                                                                                                                                                Comment

                                                                                                                                                • woj
                                                                                                                                                  <&(©¿©)&>
                                                                                                                                                  • Jul 2002
                                                                                                                                                  • 47882
                                                                                                                                                  #37
                                                                                                                                                  Originally posted by KlenTelaris
                                                                                                                                                  Aha so it's basically form of advertising.
                                                                                                                                                  or you can view it in affiliate program terms too... they pay more than they make, just like the PPS programs... the $$ is made on the "rebills"/ return customers...
                                                                                                                                                  Custom Software Development, email: woj#at#wojfun#.#com to discuss details or skype: wojl2000 or gchat: wojfun or telegram: wojl2000
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                                                                                                                                                    • {Psycho}
                                                                                                                                                      Confirmed User
                                                                                                                                                      • Oct 2010
                                                                                                                                                      • 612
                                                                                                                                                      #38
                                                                                                                                                      Looks like a real scam how cum a big company scam this way
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                                                                                                                                                        • $5 submissions
                                                                                                                                                          I help you SUCCEED
                                                                                                                                                          • Nov 2003
                                                                                                                                                          • 32195
                                                                                                                                                          #39
                                                                                                                                                          Groupon's still blowing up though

                                                                                                                                                            Comment

                                                                                                                                                            • maxjohan
                                                                                                                                                              Confirmed User
                                                                                                                                                              • Dec 2002
                                                                                                                                                              • 7219
                                                                                                                                                              #40
                                                                                                                                                              groupon?

                                                                                                                                                              I don't see their business as something that will stay long term. It's like giving away free porn...doesn't work forever, and the more you giveaway the less you make.
                                                                                                                                                              I went from 100 to 313,000 satoshis in 2 days! Lots of daily freerolls...

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