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Groupon type deals |
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#1 |
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Forum Member
Join Date: Sep 2010
Posts: 5,840
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Groupon type deals
Does Sugar not realise that Groupon have had much negative press and rapped knuckles from the ASA for pushing their merchants to offer too many deals?
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#2 |
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Forum Member
Join Date: May 2012
Location: St Albans
Posts: 83
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Quote:
Does Sugar not realise that Groupon have had much negative press and rapped knuckles from the ASA for pushing their merchants to offer too many deals?
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#3 |
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Join Date: Sep 2010
Posts: 5,840
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It was at least a year ago, when Groupon were in the news for destroying a cupcake business (among others) because they sold too many deals.
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#4 |
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Join Date: May 2012
Location: St Albans
Posts: 83
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Oh they're bringing that up on You're Fired.
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#5 |
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Join Date: Oct 2010
Posts: 4,283
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From my own experience, Groupon is a very ruthless organisation (also for it´s own employees, who have targets they have to make to survive within the company).
That said, when it works your company can thrive on the business generated from those vouchers (only have to calculate in the 50% which goes the way of sales costs). |
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#6 |
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Forum Member
Join Date: Jun 2005
Location: Nottingham
Posts: 11,478
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Quote:
It was at least a year ago, when Groupon were in the news for destroying a cupcake business (among others) because they sold too many deals.
Groupon overcooks cupcakes! I'm pretty sure that was the main OMG! Groupon is EVIL!!! feeding frenzy by the tabloids. |
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#7 |
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Join Date: Dec 2001
Location: West London
Posts: 24,303
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I went into a local restaurant last year and the waiter asked if I had a Groupon (I hadn't). The meal was good but when I searched online for the restaurant + Groupon I found loads of negative reviews saying how small the portions were and how badly presented the food was. They had done a deal with Groupon to sell a cheap meal and clearly couldn't produce good food for the agreed price. I'll happily go back to the restaurant but I doubt if anyone who bought the Groupon deal will.
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#8 |
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Join Date: May 2007
Posts: 37,641
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Quote:
The one that caught my attention was last November - co-incidently just after the time Apprentice was being filmed:
Groupon overcooks cupcakes! I'm pretty sure that was the main OMG! Groupon is EVIL!!! feeding frenzy by the tabloids. |
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#9 |
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Join Date: Sep 2006
Location: South Westish
Posts: 3,157
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Stayed at a beautiful hotel in Wales and had a seven course tasting menu with matching wines so you’ll not hear me complaining about a Groupon deal.
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#10 |
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Join Date: Jun 2002
Posts: 52,176
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Her fault for not capping the deal. I don't think you can blame Groupon for that one tbh.
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#11 |
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Join Date: May 2007
Posts: 37,641
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Quote:
Depends how they sold the idea.
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#12 |
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Join Date: Dec 2008
Posts: 519
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I found it interesting that the episode didnt go into how the deals website makes it's money. In the boardroom the team totals were simply given as the revenue generated.
In the case of groupon the website keeps half and the vendor only gets half. so for example in the case of the spa which charges £200, the deal was £99... groupon would make £49.50 comission and the spa would only get £49.50. So in reality the spa is actually discounting their package by 75% in addition groupon require the vendor to submit the groupon code from each customer who books in and uses their voucher in order to get paid. (groupon holds onto the money you dont just get it when the deal ends) If you buy a voucher but for some reason don't use it, guess who keeps the money!! That is just for groupon but I expect the website actually in the task is similar and yet they kept these details secret- ie we didnt see the candidates negotiating over % comission and LAS only announced total revenue. I'm guessing how these websites actually operate was kept a secret because once you realise how little the business is making it devalues the services to the consumer and also whats to stop you not just ringing up the vendor directly to ask them for a similar deal which would cut out the middleman, win win!! . |
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#13 |
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Join Date: Oct 2011
Location: Hertfordshire
Posts: 3,099
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Quote:
Her fault for not capping the deal. I don't think you can blame Groupon for that one tbh.
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#14 |
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Join Date: Dec 2008
Posts: 519
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#15 |
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Join Date: Jun 2004
Location: London
Posts: 5,415
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Moral of the story is, if you sign up for a massive discounted offer, lower your expectations.
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#16 |
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Inactive Member
Join Date: Feb 2012
Posts: 629
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Quote:
The one that caught my attention was last November - co-incidently just after the time Apprentice was being filmed:
Groupon overcooks cupcakes! I'm pretty sure that was the main OMG! Groupon is EVIL!!! feeding frenzy by the tabloids. |
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#17 |
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Join Date: Jun 2004
Location: North of the Watford Gap
Posts: 774
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There was also a problem with an advertising mix-up over a Christmas grotto and in some reports the grotto owner said that she had never actually signed the Groupon contract.
http://www.theregister.co.uk/2011/12...her_christmas/ http://www.telegraph.co.uk/topics/ch...pon-offer.html |
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#18 |
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Forum Member
Join Date: Sep 2010
Posts: 5,840
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Bear in mind that the salespeople are very, very persuasive. They are hiring many of the ex-Yellow Pages staff who have years of manipulating small business experience.
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#19 |
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Forum Member
Join Date: Jul 2009
Posts: 6,880
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Surely I can't be the only person who thinks that £26 for 12 cup cakes isn't good value?
![]() ![]() I'm sure you could get 12 lovely chocolate muffins for cheaper. |
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#20 |
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Join Date: Jun 2006
Posts: 7,041
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Quote:
Surely I can't be the only person who thinks that £26 for 12 cup cakes isn't good value?
![]() ![]() I'm sure you could get 12 lovely chocolate muffins for cheaper. |
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#21 |
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Join Date: Aug 2009
Posts: 6,441
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Quote:
Her fault for not capping the deal. I don't think you can blame Groupon for that one tbh.
http://www.forbes.com/sites/timworst...eware-groupon/ It is in Groupons interest to oversell the deal, assuming they have done this. The same happened with a massuer, groupons attitude 'what are you moanng for, these are extra customers' he had agreed to sell 250 1 hour sessions, they sold 400. Problem is if the business turns them away it is them that looks bad. |
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#22 |
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Join Date: Dec 2001
Location: West London
Posts: 24,303
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Quote:
You're not alone, I think anyone who believes £26 for twelve bloody cupcakes is a good deal needs their head examined. I wouldn't pay more than a quid for one!
Her problem was that she went from receiving over £2 per cupcake to getting under 20p per cupcake. She should never have agreed to the deal in the first place. |
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#23 |
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Inactive Member
Join Date: Feb 2012
Posts: 629
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Quote:
£26 was her normal price, i.e. just over £2 per cupcake, which is probably the average price of a cupcake these days.
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#24 |
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Forum Member
Join Date: Dec 2001
Location: West London
Posts: 24,303
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Quote:
Please, there is about 10 to 20 pence per cupcake cost ........ so marking it up 1000% doesn't somehow justify it.
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#25 |
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Forum Member
Join Date: Nov 2011
Posts: 12,523
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Quote:
Please, there is about 10 to 20 pence per cupcake cost ........ so marking it up 1000% doesn't somehow justify it.
I think it is the fancy, Mr Whippy style, icing that appeals to cake lovers, not the actual rather bland cake. The icing is probably more expensive than the cake. |
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