Comment by xanadohnt | Hacker News Reader

Comment by xanadohnt | Hacker News Reader

Groupon needs to fail. The faster the better. Often the small business owners that are attracted to Groupon's service are not technologically savvy. They become starry eyed with the promise of new customers, business (and - ultimately - money), and don't grasp what's at risk. It's typical for a business owner to have a wholly negative experience with a Groupon sale. "Grouponers" have a certain DNA. And that DNA is at odds with what Groupon promises. "Attract new customers" - NO, most only go to the merchant for that single, highly discounted, offering, never to return. "Attract collateral business" - NO, studies show grouponers rarely purchase beyond the sale item. "Make lots of money during the sale because you'll get a guarantee number of X buyers" - NO, Groupon keeps such a large percentage of the sale (50%) that most sales operate at a loss to the merchant.

But there are more systemic issues with Gropoun, merchant, and employee relationships. Again, the DNA of a grouponer - being that of a deal thrift - often leads to a strained relationship between employees and grouponers. No use in fostering good rapport with the customer; you'll never see 'em again. Tips will be small (again, deal thrift), upselling is improbable, etc., all leading to employees often becoming resentful toward grouponers. All this leads to a large net negative to the small business owner.

Groupon is a well disguised parasite.

http://www.msnbc.msn.com/id/45398235/ns/world_news-europe/#....

http://www.riverfronttimes.com/2011-10-13/news/groupon-fail-...

http://crosscut.com/2012/04/11/business/22198/Groupon-When-w...

> "Grouponers" have a certain DNA. And that DNA is at odds with what Groupon promises.

> Again, the DNA of a grouponer - being that of a deal thrift - often leads to a strained relationship between employees and grouponers.

This is insulting and frankly, just bullshit. The overwhelming majority of the businesses on Groupon are failing. Of course I'm not going to be back. They won't be there!

Out of the businesses that aren't failing, you can put them in these categories: new location for an established business, new business, experiences (like tours, hot air balloons, etc.), confused business.

I have experience with all of these.

1. New location. There was a restaurant that I like that opened a new location. They had a groupon. I already knew they had great service and excellent food. I went on a groupon, had the experience I expected. Did I return to that location? No, I prefer the other one because it's closer. But now I know about it and if I'm in that neighborhood, I know I can go to that location and have the same excellent experience I expect.

2. New business. These mostly suck. Because they're new and don't know what they're doing. Out of all the ones I went to (and I went to many), I would only go back to one. It was a chain, so they had fewer variables to juggle.

3. Experiences. These are flip of the coin. Some are excellent, some suck, but regardless ... once I had an experience, I'm not going to have it again. That's boring. They know that. Most of the groupons for these are structured so that they make their money on the first round.

4. Confused business. There's only been one like this. A fantastic restaurant. I bought 2 groupons and went there twice. I have no idea why they did it. The place was packed, service great, food amazing. It was voted Groupon of the year in my area (NYC) and they had it again ... so I bought 2 more and went there 2 more times. Will definitely come back many, many times.

Groupon is going down the toilet. That's because there are fewer and fewer of the above businesses on it. Now it's 99% failing businesses. Unless I already know the business or I'm traveling, I'm not going to touch Groupon. That's after almost 50 groupons purchased.

I would submit that you are in a very small minority and your experience is very unique.

> The overwhelming majority of the businesses on Groupon are failing.

This may or may not be true. Even if true, I fault the failing business owner for being a bad business owner. But I still largely fault Groupon for preying on those who have a history of bad decision making. "Oh, this guy isn't business savvy?! twists mustache Let's sell 'em on Groupon!"

"The overwhelming majority of the businesses on Groupon are failing."

To use your own words: "This is insulting and frankly, just bullshit." I would love for you to find a non-anecdotal study which shows that most (>50%) of businesses on Groupon are failing.

"Now it's 99% failing businesses." Ahh...now I know you're just being hyperbolic.

Obviously it was hyperbole, but in the restaurant category, the few gems that popped up here and there, have been largely replaced by restaurants which aren't going to be around much longer.

My use and excitement for Groupon is almost on the same trajectory as their stock and frankly, I don't think I'm alone.

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