Merchants are not happy...Are the buyers?


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?

Friday, January 14, 2011

Are We Seeing Web 1.0 Repeat Itself with Groupon?

How long before Groupon's Bubble bursts? 
   Is Groupon soon to be a Web 1.0 dotcom bust?   
 What's driving it this time? Greed or Fear?  

  • When does group coupon e-mail start to look more and more like Spam and you filter the deals?
  • What happens when buyers get tired of groupons for frivolous products and services? Today’s buyers want more real products and services to benefit themselves and their families.
  • How many groupon clones can the market support? China already has 500. They invented the groupon so it makes sense they would have that many groupon clones operating today.
  • How many daily, weekly groupons can customers in tough economic times do groupons before the whole process just collapses under its own weight?
  • If every merchant does a groupon, and continues to do more groupon, will anything ever be sold for the original selling price and not at half price?
  • Groupons don’t happen without a merchant. If a merchant doesn’t makes money (deal is 50% off sell price and merchant getting only 50% of the revenues. How long can merchants anywhere continue to operate in this manner?
  • What happens to the profitability of a groupon if the merchants push back and pay lower profits to Groupon and clones?
  • Are we going back to Web 1.0 Dotcom days when a business plan for selling dog food on-line received millions of dollars from investors?
  • How long before Groupon becomes a Groupoff ? Hello Web 1.0 my old friend, its good to have you back again?

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