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Re:Groupon Is Laying Off 1,100, Shutters Operations in 7 Cou... by nadams on Tuesday September 22, 2015 @11:57AM (#10259406)
> I stopped using groupon because of the near-universal resentment I felt from the employees of the stores selling the groupons. Clearly, these businesses weren't getting the value they thought they would get

I think that's just a misunderstanding on the stores part. A groupon is just another form of advertising (which costs money) - but businesses believe that by offering groupons they will come out ahead.

I've personally gone to places I wouldn't have normally because of groupon and usually spent extra.

Re:Groupon Is Laying Off 1,100, Shutters Operations in 7 Cou... by ryan90 on Tuesday September 22, 2015 @12:23PM (#10259616)
The business typically only makes 25% of what they would have. A restaurant cannot survive on that margin.

And most Grouponers are bottom-feeders. Just looking for a deal. They're also the most likely to be vocal on Yelp (there was a study somewhere showing how Grouponers/Living Social people were more likely to leave bad reviews).

Groupon's salespeople are so high-pressure and portray an overly optimistic view of what a struggling small business should expect.

Speaking from personal interactions from several business owners who have tried daily deals here. Sure, a business needs to calculate it's ROI, but I think Groupon 1) oversells the value of 'getting their name out there' through their deals and 2) doesn't explain how bad their customers are.

Re:Groupon Is Laying Off 1,100, Shutters Operations in 7 Cou... by wpietri on Tuesday September 22, 2015 @12:22PM (#10259603)
If it is a common misunderstanding on the stores' part, I think it's Groupon's job to manage that. If an organization is set up to sell the product to the wrong customers, that organization should fix their sales process.

But I suspect it's a correct understanding on the part of the employees. When I talked with servers at restaurants, their experience was that the average Groupon customer was demanding, cheap, and a bad tipper. And they were also unlikely to come back, meaning there wasn't a lot of incentive to invest in a relationship.