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Groupon fleeces small businesses

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  • Jun 20th, 2019 8:08 pm
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[OP]
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Aug 10, 2013
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Groupon fleeces small businesses

Some of you may not know this but when you purchase a groupon the vendor only gets half or a little less than the price listed on Groupon. So in knowing this and trying to support a small business I contacted a restaurant that had a Groupon deal and asked them if I can come into the restaurant to purchase the deal this way they get to keep all $ and I don’t purchase through Groupon and they actually refused? This seems so bizarre to me... anyway when purchasing Groupon’s do you know or care how much merchants actually get and have you ever tried approaching a business without the Groupon for the same deal ?
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Heavenleigh85 wrote:
Jun 2nd, 2019 10:16 pm
Some of you may not know this but when you purchase a groupon the vendor only gets half or a little less than the price listed on Groupon. So in knowing this and trying to support a small business I contacted a restaurant that had a Groupon deal and asked them if I can come into the restaurant to purchase the deal this way they get to keep all $ and I don’t purchase through Groupon and they actually refused? This seems so bizarre to me... anyway when purchasing Groupon’s do you know or care how much merchants actually get and have you ever tried approaching a business without the Groupon for the same deal ?
This seems so bizarre to me.
So you want to pay Groupon price buy do not want to use Groupon? Is that assumption correct? So you want good price and you dont want others to make money?
Last edited by callernamet on Jun 2nd, 2019 10:27 pm, edited 1 time in total.
I dont care about Ethics, morals, rules or laws. You guys seem trapped by the confines of your own ideologies.
(borrowed)Not enough bans and the howling monkeys start up about them promoting hate and whatever. howling monkeys or hall monitors?
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Dec 3, 2009
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I'd refuse too. There are a limited number of Groupon's that go out towards a deal. You are incorrect in thinking because you are asking for the deal directly you are doing the small business a favour.
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So small businesses are forced to do business with groupon? What about large businesses, are they being fleeced to, because there's lots of large businesses on groupon.

I really don't think you know how groupon works
[OP]
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callernamet wrote:
Jun 2nd, 2019 10:26 pm
This seems so bizarre to me.
So you want to pay Groupon price buy do not want to use Groupon? Is that assumption correct? So you want good price and you dont want others to make money?
I don’t think you’re understanding. If I order a Groupon for $10; the restaurant owner gets $5. I go to the restaurant directly and offer them $10 for the same deal, they get $10. It’s not brain surgery
[OP]
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Shaner wrote:
Jun 2nd, 2019 11:01 pm
So small businesses are forced to do business with groupon? What about large businesses, are they being fleeced to, because there's lots of large businesses on groupon.

I really don't think you know how groupon works
They are not forced but in exchange for the Groupon promotion they only give the business half of an already half off product. Businesses don’t make any $ with groupon they get some exposure yes but typically from cheap people who just buy Groupon’s and go in to the next place. You can google this info it’s well known that Groupon fleeces businesses in general
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I don't disagree with you OP. it's just that I find a lot of the deals to be questionable to begin with. I used to buy a lot of groupons for restaurants. In general, the restaurant would not offer a losing deal to begin with. Like...they stuff the deal with a lot of high margin stuff like soups, appetizers, wine etc. I also want to point out that $10 for $20 should be read as "$10 off". I am more amazed that there isn't some kind of legal issue advertising this as 50% off. If I have a dinner for $40 (including tax and tip let's say), then in total I would have paid $10 for the groupon + $20 = $30 total. $30 25% off from $40. Still pretty good but far from the 50% advertised.

This is North America. Groupon can't force small businesses to give deals. The small business that chose to offer probably understands the risks. Groupon is a business too and by necessity needs to take a cut.

I really don't see an issue with Groupon. The market has more or less sorted itself out. Groupon used to be so prominent. Now it seems like a dying trend. The # of deals I see for Toronto is so limited. And the site keeps adding deals outside core Toronto to make it seem like there are a lot of deals. There really aren't (not for restaurants anyways).
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Heavenleigh85 wrote:
Jun 2nd, 2019 11:04 pm
I don’t think you’re understanding. If I order a Groupon for $10; the restaurant owner gets $5. I go to the restaurant directly and offer them $10 for the same deal, they get $10. It’s not brain surgery
You're thinking a little too small. First off, you're troublesome to the restaurant. They just want a steady stream of customers coming in and out with minimal talking.
I understand you're trying to help, but you're trying to make an unusual exception - something small businesses don't like - they like steady predictable business.
You also might be talking to the waitress who couldn't care less either.
You also probably sound a bit like a "scammer" trying to cheat the system. Like if I walked into a restaurant and said "i don't have the coupon for the deal, but hey, I COULD have just purchased it earlier, but hey, why don't you just give me the deal anyways, so you win and I win, wink-wink, good deal ok? "

no restaurant owner wants to stop and think about it for a measly $12.99 lunch meal
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Heavenleigh85 wrote:
Jun 2nd, 2019 11:09 pm
They are not forced but in exchange for the Groupon promotion they only give the business half of an already half off product. Businesses don’t make any $ with groupon they get some exposure yes but typically from cheap people who just buy Groupon’s and go in to the next place. You can google this info it’s well known that Groupon fleeces businesses in general
Fleece refers to some fraudulent behaviour. Groupon isn't fraudulent. Businesses know upfront what the costs will be to do business with groupon and they either accept or they don't. Considering some of the largest corporations out there do business with groupon, I don't think they are fleecing anyone. Businesses obviously feel the exposure/advertising is worth the cost. Groupon promises them a certain level of business for a discount. Business can accept or not.
[OP]
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Shaner wrote:
Jun 2nd, 2019 11:20 pm
Fleece refers to some fraudulent behaviour. Groupon isn't fraudulent. Businesses know upfront what the costs will be to do business with groupon and they either accept or they don't. Considering some of the largest corporations out there do business with groupon, I don't think they are fleecing anyone. Businesses obviously feel the exposure/advertising is worth the cost. Groupon promises them a certain level of business for a discount. Business can accept or not.
It’s not fraudulent but them taking a 50% cut is the definition of fleecing. It’s interesting to me when I wasn’t aware of how Groupon worked I always wondered why I was treated differently using it, they always give a “ew look at this cheap fk” look . Can’t just be me lol! I’ve had maybe 1 good experience I would say using groupon, but the fact that businesses literally make no money I have stopped purchasing them all together. I don’t need any spit in my Groupon sandwich lmao
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Heavenleigh85 wrote:
Jun 2nd, 2019 11:40 pm
It’s not fraudulent but them taking a 50% cut is the definition of fleecing. It’s interesting to me when I wasn’t aware of how Groupon worked I always wondered why I was treated differently using it, they always give a “ew look at this cheap fk” look . Can’t just be me lol! I’ve had maybe 1 good experience I would say using groupon, but the fact that businesses literally make no money I have stopped purchasing them all together. I don’t need any spit in my Groupon sandwich lmao
Here's a question for you then. If it's nothing but fleecing and there's no profit to be made, why would a company like Ceasars Entertain Corporation, a company with annual revenues of $8+ billion, do business with groupon? In case you're wondering, Ceasars does business with groupon for many of their hotel properties. Why would a large corporation like Ceasars do business with groupon if they were losing money in the process? Surely they can afford other advertising avenues. I wonder if the execs at Ceasars know they're getting fleeced?
[OP]
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Shaner wrote:
Jun 2nd, 2019 11:49 pm
Here's a question for you then. If it's nothing but fleecing and there's no profit to be made, why would a company like Ceasars Entertain Corporation, a company with annual revenues of $8+ billion, do business with groupon? In case you're wondering, Ceasars does business with groupon for many of their hotel properties. Why would a large corporation like Ceasars do business with groupon if they were losing money in the process? Surely they can afford other advertising avenues. I wonder if the execs at Ceasars know they're getting fleeced?
It’s a hotel it makes sense for them to sell on groupon if you notice a lot of stipulations on when those Groupon’s can be used and it’s usually whatever leftover rooms they have, again it’s a hotel so they will always have empty rooms and billion dollar Corp that prob just has Groupon there as extra toilet paper money. But for the average small business it sucks, if you open your little Shane’s taco truck and you normally sell your tacos for $20. Groupon will offer them For $10 and u take home $5. It’s fleecing there’s no other way to word it really. And would you put extra taco meat in that Groupon taco or the taco that someone’s paying the full $20 for lol
[OP]
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BananaHunter wrote:
Jun 2nd, 2019 11:18 pm
I don't disagree with you OP. it's just that I find a lot of the deals to be questionable to begin with. I used to buy a lot of groupons for restaurants. In general, the restaurant would not offer a losing deal to begin with. Like...they stuff the deal with a lot of high margin stuff like soups, appetizers, wine etc. I also want to point out that $10 for $20 should be read as "$10 off". I am more amazed that there isn't some kind of legal issue advertising this as 50% off. If I have a dinner for $40 (including tax and tip let's say), then in total I would have paid $10 for the groupon + $20 = $30 total. $30 25% off from $40. Still pretty good but far from the 50% advertised.

This is North America. Groupon can't force small businesses to give deals. The small business that chose to offer probably understands the risks. Groupon is a business too and by necessity needs to take a cut.

I really don't see an issue with Groupon. The market has more or less sorted itself out. Groupon used to be so prominent. Now it seems like a dying trend. The # of deals I see for Toronto is so limited. And the site keeps adding deals outside core Toronto to make it seem like there are a lot of deals. There really aren't (not for restaurants anyways).
Of course the deals are going to be questionable restaurants have to advertise and try to make
Some $ otherwise they would be giving out a bunch of free food. Groupon does force them to advertise 50% off so what I’ve seen some of them doing is jacking up the price to satisfy the Groupon required 50%. Then to take home 50% of that it sucks
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Heavenleigh85 wrote:
Jun 2nd, 2019 11:04 pm
I don’t think you’re understanding. If I order a Groupon for $10; the restaurant owner gets $5. I go to the restaurant directly and offer them $10 for the same deal, they get $10. It’s not brain surgery
And you dont know how business works? Groupon works? Contractual obligations. Why dont you ask the owner why they go to groupon if not brain surgery? :rolleyes:
Possible You are naive or too young to understand the complexities of life and business. Anway good luck with what you want to achieve. read other comments for more info.
Heavenleigh85 wrote:
Jun 3rd, 2019 12:15 am
Of course the deals are going to be questionable restaurants have to advertise and try to make
Some $ otherwise they would be giving out a bunch of free food. Groupon does force them to advertise 50% off so what I’ve seen some of them doing is jacking up the price to satisfy the Groupon required 50%. Then to take home 50% of that it sucks
Forces them? All I can say is What the?
I dont care about Ethics, morals, rules or laws. You guys seem trapped by the confines of your own ideologies.
(borrowed)Not enough bans and the howling monkeys start up about them promoting hate and whatever. howling monkeys or hall monitors?
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May 24, 2012
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Think about it this way: Small businesses would choose to use groupon (or any other company) as a platform only if it benefits them.

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