Groupon generating Revenues! - Merchants taking big looses!
Merchants are not happy...Are the buyers?
GROUPON BUSINESS MODEL IS FLAWED?
A Groupon happens between a Merchant and Buyers. - No Merchant! No Groupon!
1. Merchants Loose? 75% off existing Selling Price didn`t make sense, but inflating the price does. Caveat Emptor!
2. Buyers Loose? Multi State Class Action Lawsuits accuse Groupon of selling gift certificates with short expiration dates.
3. Investors Loose? If Groupon comes apart before the IPO, is it worth doing an IPO?
Wednesday, December 22, 2010
Groupon says so far they've saved consumers over $850-million. What have they made for the merchants? Where is the win-win?
If Groupon is saving the conusmer $850-million. Who is covering the loss of the $850-million? How long can the merchants continue to subsidize the consumer and Groupon?
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