Daily deals like Groupon are fundamentally flawed in certain markets.
The problem is that it rarely generates repeat customers and/or customer loyalty - they tend to generate customers that come once, when they have a coupon, and never come again.
So unless your business is high margin, you're almost guaranteed to lose money from daily deals.
Thus, it's very good for things like paintball and skydiving and very bad for restaurants.
The problem is that it rarely generates repeat customers and/or customer loyalty - they tend to generate customers that come once, when they have a coupon, and never come again.
So unless your business is high margin, you're almost guaranteed to lose money from daily deals.
Thus, it's very good for things like paintball and skydiving and very bad for restaurants.