Apr
2
You might have noticed that I'm not a fan of Groupon.
Offering "Kamikaze discounts" to "Bottom feeding customers"
...are just two of the problems I have with their method of operation.
I don't have a problem with "Flash Sales". In fact I think they're a great idea if done properly. I just don't think you need to drop your price round your ankles and let someone blow smoke ** **** **** in order to make them happen.
And now I discover that Groupon isn't even in the "voucher" business!
Offering "Kamikaze discounts" to "Bottom feeding customers"
...are just two of the problems I have with their method of operation.
I don't have a problem with "Flash Sales". In fact I think they're a great idea if done properly. I just don't think you need to drop your price round your ankles and let someone blow smoke ** **** **** in order to make them happen.
And now I discover that Groupon isn't even in the "voucher" business!
One of the leading lights in the "anti Groupon" campaign is a chap called Rocky Agrawal - here's his take on what's happening now, and why Groupon might not be around for much longer.
Note the following paragraph,
"Well, for starters, it’s not a coupon company nor a marketing company. At its core, Groupon’s U.S. business is a receivables factoring business, as I wrote last year. They give loans to small businesses at a very steep rate (the price of the discount plus Groupon’s commission). They get the money to fund these loans from credit card companies such as Chase Paymentech. Groupon is essentially a sub-prime lender that does zero risk assessment. And as word continues to spread about what a terrible deal running a Groupon is for many categories of businesses, the ones that will choose to run Groupons are the ones that are the most desperate. For U.S. based businesses, the only time I can definitely recommend running a Groupon is if it is otherwise going to go out of business."
So, you run a Groupon to promote your hotel and it says to your market - "I'm in trouble".
How's that for a bit of brand association? It does the same job as hanging out the "for sale" sign.
Note the following paragraph,
"Well, for starters, it’s not a coupon company nor a marketing company. At its core, Groupon’s U.S. business is a receivables factoring business, as I wrote last year. They give loans to small businesses at a very steep rate (the price of the discount plus Groupon’s commission). They get the money to fund these loans from credit card companies such as Chase Paymentech. Groupon is essentially a sub-prime lender that does zero risk assessment. And as word continues to spread about what a terrible deal running a Groupon is for many categories of businesses, the ones that will choose to run Groupons are the ones that are the most desperate. For U.S. based businesses, the only time I can definitely recommend running a Groupon is if it is otherwise going to go out of business."
So, you run a Groupon to promote your hotel and it says to your market - "I'm in trouble".
How's that for a bit of brand association? It does the same job as hanging out the "for sale" sign.
0 Trackbacks