Being a recent college graduate, I’ve learned the tricks and trades of pinching pennies and it’s not just buying cheep beer. The new sensation that’s sweeping the online nation that has everyone’s attention (and so does my cheesy accidental rhyming) is called Groupon. Groupon is a revolutionary coupon-networking site for growing market of people that are always looking to save a buck. The basics of this stupid-simple business plan are explained in the video bellow. If time is money then you might want to watch. It’s worth every second.
Genius right? Believe it or not, I’m not employed by Groupon. I’m just a fanatic of things that make cents. Companies like GAP have experienced the power of this piggy bank saver network. GAP’s coupon was the first national groupon in all participating cities and the numbers were outstanding. But…is that good thing? At the end of the day, GAP had about 300,000 Groupons sold. Awesome, right? Maybe not, that’s estimated to be about $7.5 million revenue loss for one risky campaign. Was the PR and sales promo worth it? This has done wonders for the participating businesses, giving them access to new customers while giving users bargaining power to receive unbeatable discounts. It’s a win-win situation. So who is making the money, Groupon or the companies? Listen to Andrew Mason, the new CEO of Groupon in the video bellow for a little background on how they make a buck by saving your loot.
So it works, but is it beneficial for nation-wide sales on Groupon? I want to hear your thoughts and comments.