I have heard of Groupon but have been sceptic of its offerings. It's just too good to be true. Imagine a concert ticket that costs Php3,000 could only be gotten for Php500 through Groupon? Or a Hair Color Package that should have been Php2,000 is only Php500. They have very low travel deals too. It made me think.. "What's the catch?". Alas, I was naive and ignorant.
I was forced to get to know Groupon through a Leadership Forum assignment. The objective was to know the company in order to assess if they are a Game Changer, and know what can we learn from them. I am glad I did. Groupon's business model is quite exciting. I'm not gonna spill everything here as you can do your own reading and discover it yourself too. It has an interesting history. It is also a highly profitable company with 24% increased revenue amounting to $3.2 billion in 2014 compared to $2.6 billion the previous year. Here's a quick overview of Groupon. Click the link for video: What's Groupon.
Why are they so profittable? Because customers flock to buy from them. They offer the best deals in the market. Groupon earns 50% of each deal.
50%?! That's a lot for a merchant to give. If you are the merchant, you are either selling your product at a loss or with very small margin of profit. So why do merchants flock to post deals in Groupon? If you're a new company and you just want to get traffic at your door, Groupon is perfect for you. This could serve as your advertisement too. Foot traffic equals more customers from referrals and additional profit from upsell.
So you see, it's a win-win. There's no catch.
To try it myself, I purchased a deal. It was the best deal ever. An RF + Cavitation (12 Sessions) deal should have costs Php20,000. I got it for only Php1,200. Indeed, there's no catch. I still got the best deal the company offered. They didn't treat me differently. They treated me like a regular customer paying the full amount. Double great! :D
How to know of Gropon deals?
Easy. Just download the Groupon app to your smart phone. Create an account. Right after, you should be seeing great deals from your local stores. Purchase through your credit card. Enjoy shopping! :)