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Deal With It

Deal With It

Groupon’s Kidz Club Has Us Hiding Under Our Covers

How cool is e-male? (groupon.com)

Apparently the one demographic daily deals giant Groupon felt it was sorely lacking was children, because kids possess so much purchasing power and all. Do you know how much kids are netting in allowance these days? Like, $20 a week at least. So Groupon decided to create a “Kidz Club” for these middle school high rollers, complete with a questionable cast of characters. The whole thing is so absurd that it’s pretty obvious that Groupon is in on the joke.

On the Groupon blog, they explained the club thusly: “At Groupon, we love kids. In fact, we love them so much that we wanted to give them a cool ‘zone’ on the ‘Net where they can hang out with brand new ‘cyber-frenz’!” We sense that someone’s tongue is firmly planted in-cheek. Read More

Deal With It

Why Does Groupon Really Suck? Because It Makes People Eat at Bad Restaurants [TUMBLR]

the_big_deal_two

Ryan Sutton, food critic for Bloomberg News, can now add crusader to his resume. While the rest of us sit idly by, watching our inboxes fill up with offers to suspicious-sounding restaurants no one’s ever heard of and spas where we wouldn’t dare disrobe, Mr. Sutton is doing something about it.

Two months ago, he launched a Tumblr called The Bad Deal devoted to “highlighting BAD DEALS on Groupon, Gilt, Living Social, Savored and elsewhere,” in the hopes of saving consumers from “wasting their disposable income on crummy offers that are never redeemed.”

Exposing poor bangs for one’s buck is such a passion project for Mr. Sutton, that when Eater requested an interview about why he launched the site, he insisted on manning both the question and answer portion of the Q&A. We have to say, he really asked himself all the right questions. Read More

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Groupon’s Business is Decaying in its Established Markets

groupon boston

The following is an in-depth analysis of Groupon’s business in one of its oldest markets, Boston, by the folks at daily deal aggregator Yipit.

The entire piece is worth reading, but for the TL;DR crowd, here is the breakdown. Groupon’s costs to acquire customers is skyrocketing, while its revenue per customer is plummeting. Along with shrinking margins and a lower number of Groupon’s sold per deal, Yipit sees serious warning signs in the company’s financials. Read More