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Ruth M.

Contributor Level

Total Points
102

1 Review by Ruth

  • Groupon UK

1/25/11

I am horrified by the Business Model. Buying these discounted vouchers runs the risk of putting good, decent hardworking people out of business.

When Groupon sign a business up, they expect the business to provide a good deal. Say 70% off. Then you buy a voucher, and they keep say 50% of that, leaving 15% of the original cost to cover wages, materials used etc. Let's say £7.50 for a £50 treatment, service or whatever. Thinking of a hairdresser: Heating, lighting, water, shampoo, conditioner, wages, and I bet you want a coffee too. I'm not surprised some of the businesses mentioned in this list take their phone off the hook!

The salesmen can be pretty unscrupulous too. They don't advise that as a business you could put a cap on how many vouchers Groupon will sell, or that it it could be within a certain timescale. That could HELP a business. I suspect they are more interested in commission.

I can't really see where they are adding value here. We're on the edge of that double dip recession, and here is a company adding no value, if anything pushing businesses over the edge. PLEASE, DON'T buy a Groupon.

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