My First (and last) Groupon Experience
kevinlochner.com
kevinlochner.com
My understanding is the the retailer gets paid even when the groupon isn't redeemed. One would think the retailer would make up some money on the non-redeemed groupons, but groupon claims a higher than 90% redemption rate.
Other than that I completely agree about service businesses. I saw a local bike shop sell over 1000 tuneups for $7 each. Meaning the bike shop received $3.50 for a tuneup, and their techs would be booked solid for a long time preventing them from being able to perform as many higher profit services.
I know we are a society of convenience, but are we really at the point of boycotting and writing rants to influence other's to follow simply for being slightly inconvenienced with no direct financial loss?
With respect to my own calculations, it's asking a lot (or at least asking something new) of the user to vet the likelihood of actually receiving the service. Again, I tried to be fair in saying that it will take time for both vendors and consumers to flesh out the best way to interact with Groupon.
And if the Groupon doesn't live up to your expectations:
From the Groupon Blog:
"If Groupon ever lets you down, we’ll return your purchase—simple as that. Why? Because when we do a bad job, we want it to be easy for you to punish us. We believe that when a customer has a bad experience, companies pay for it sooner or later—so we’d rather pay fast so we can make things right before it’s too late."
And from their About page:
Unbelievable customer service. Like you, we've suffered through hour-long "transfer-athons" with customer service departments, or waited days for an email reply to to a simple question. If you contact us, we'll do what it takes to make things right - and we'll do it fast. Email us, or speak with a human (during normal business hours): (877) 788-7858"
I can understand why a business might have a gripe with Groupon (even if its their own ignorance that caused the gripe), but I can't imagine why a customer could be disappointed by Groupon with that kind of policy.
Would I want a deal from my favorite restaurant? Yes.
Do I want to evaluate the deal every day to figure out if it's worth buying? NoAnyways, that would definitely piss me off a bit as well, crappy deal. I'll keep using Groupon, I can't pass up half off concert tickets and delicious foods :D.
Edit: Oh, this guy says it much better: http://hackerne.ws/item?id=1698788
I've also had trouble scheduling a discount spa treatment, and the one I did redeem came with a very heavily upsold expensive beauty purchase - sure, I could have stood firm and hassled my way out of it, but she was very persistent and I value my time and sanity more than the price of a bottle of facial cream.
The Groupons for "$5 for $10 of $ethnic food" I just don't bother with. To be honest, I only go for these group buy discounts if it's a really good looking deal right now, as I know what I'm getting into booking-wise.
And it does work for some; I just got my hair cut at a salon that had been Grouponed, leading to a handful of new positive Yelp reviews, leading to me finding them in the first place. Happily paid full price, but all the smug Yelpers boasting about their Groupon left a slightly acidic taste in my mouth.
They're only really different in that Woot is for tangible goods and Groupon is for local services.
The only way that they're at all similar is one possible thing to purchase per day. Otherwise they're completely different.