comment by kleinbl00

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kleinbl00 · 4799 days ago · link · · parent · post: Groupon has spent about as much on advertising this year as Visa and Time Warner Cable.

Well, I understand the theory. You'll notice that Groupon tends to favor food and service industries. They've always been coupon-based - free breadsticks with order, buy one entree get one free, etc. They usually come in your junk mail. Get someone to try a new restaurant and if they like it, they're likely to keep coming back.

Same with services. How many massages do you need? Well, if your insurance covers it, sometimes two a week. Even if you don't, some people will treat themselves to a massage every week. Mani/pedi? Same deal.

Thing is, though, this business model is covered quite nicely by junk mail.

As far as I'm concerned, Groupon - even more than Facebook - is an example of the dotcom bubble reinflating. This shit can't continue.

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thenewgreen · 4799 days ago · link ·

As far as I'm concerned, Groupon - even more than Facebook - is an example of the dotcom bubble reinflating. This shit can't continue. -I couldn't agree more. I work with a large variety of different business owners and ALL of them are jumping on Groupon/FB and sincerely think it will increase profitability. Why? Because consultants push it on them left and right and much like this video posted by mike http://hubski.com/pub?id=8026 they don't want to be the last one "dancing". Eventually, they will realize that the most successful businesses in their industries are always going to be the ones that focus intensely on having the greatest product and the greatest customer service.

I had a friend that owned a bar and always had a $1 PBR on tap. The bar next to his charged 3$ a PBR. The bar next to him was always busier and the majority of the people at his competitors bar were drinking PBR's. Why didn't they come next door to him? Because his service sucked. Too many merchants are looking for a "silver bullet" to help drive revenue. It's no secret though, focus on your product and your service, throw in some targeted marketing and good things will happen. Groupon and FB pages for the most part don't do shit.