Using Groupon To Market Your Business

Discussion in 'Growing and Managing a Business' started by thealchemist, Mar 28, 2014.

  1. thealchemist

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    May 29, 2013
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    Hi. I have a family member who started a touring business where he rents a coach bus and creates a tour to historic cities across the midwest and east coast. The business has been very lucrative and he's been able to market the business by word of mouth and ads in newspapers. However, he recently attempted offer a special on Groupon that would allow people to purchase a ticket that would cover the bus fair and a hotel room for a two day one night tour to a historic location.

    It sounded good on paper, but Groupon wanted him to give buyers a 50% discount for the ticket. Once the ticket was purchased, Groupon would then take 50% of purchase price and leave my family member with only 25% of what he would normally charge for a ticket. This, of course, means he would be losing money. So my question is, to anyone who has dealt with Groupon in the past, how do companies using Groupon make a profit? And can you give any tips on how to successfully use Groupon without losing money?

    Groupon is an excellent way to market a business, but if you losing money, then it's kind of pointless.
  2. Dominic2014

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    Mar 26, 2014
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    Nail on the head, no point in using something to create more business which actually makes you lose money. I don't actually know much about Groupon companies but my impression is that they seem too good to be true and probably are. The pros are big and bold, whilst you will most likely find the cons in the terms and conditions. I personally would stay away but then again I know very little about it.

    Best of luck with the family member's business.

  3. henna

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    Mar 18, 2011
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    Deals is a very critical of business growth. I would recommended put a huge focus into building your target audience and subscriber based on. You will launch of your venture.
    #3 henna, Apr 18, 2014
    Last edited by a moderator: Apr 18, 2014

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