Curse of Groupon...or business as usual??? (Austin, Anderson Mill: get credit, purchase)

[10scoachrick]

Originally Posted by Don in Austin

Taking Groupon is a sign of desperation. A failing business offers merchandise or services for half price and then Groupon only gives the business half of that. Groupon promotions produce a temporary surge of transactions at a loss from a segment of the public that is unlikely to come back and pay full price.

I'm not sure desperation is the word I would use; but it certainly is a tricky vehicle for increasing traffic. It can be similar to any introductory offer for a new business, for example. The business takes a hit on a service/product in order to stimulate sales and hopefully entice a customer to remain on board. As mentioned, Groupon is a darned expensive way to do it! On the other hand, I've used Groupon at quite a few businesses that seem to be doing very well. Would I go there without a Groupon? In many cases...yes...many cases...probably not.

[Cardiff Giant]

Wow, Cuatro's is gone? I used to go there for happy hour on Friday's before my kids were born, now I just go home. It always seemed busy enough but it didn't seem like the best run establishment. Did anything open in its place?

I agree that places that offer Groupon's appear to be struggling, except for Vivo (though the north location closed).

[Trainwreck20]

Some spa up in north Austin was destroyed by groupon, as I understand it, although partially through their own fault. They apparently were booked up for over a year with free treatments, which left no room for paying customers...Salon 505 or something?

[centralaustinite]

Here is a quick slideset about how Groupon damages small businesses

Groupon Kills Small Business

And couple more links
The Good And Bad Of Groupon For Small Business
Groupon a bad deal for restaurants and everyone else, including Groupon | O'Dell Restaurant Consulting's Blog
Why Groupon Sucks for Small Businesses | PCWorld

[RooCeleste]

Originally Posted by Trainwreck20

Some spa up in north Austin was destroyed by groupon, as I understand it, although partially through their own fault. They apparently were booked up for over a year with free treatments, which left no room for paying customers...Salon 505 or something?

Yep, they were HORRIBLE with their Groupon-type deal -- I've NEVER had such crappy service or attitude in my entire life, they canceled our appointment as we walked in the door, wouldn't reschedule for months later, etc. They acted VERY snotty and superior to their customers -- I wanted to point out that they were working while I was out playing and trying to get facials and massages! The only good part about it was the sweet girl who did the facial; she was amazing. In lieu of a monetary tip (mandatory certain percentage of the deal -- they even had a sign out front telling you that), I gave them a "tip" in written format, in an envelope, listing about 10 things they could do better! I had paid with cash, too, so they weren't able to charge the monetary tip on my credit card. But the joke ended up being on them again, because my deal was free due to others buying it from my link, and I demanded a refund for my mother's because she lives out of town and they canceled on us when we walked in the door for our appointments.....but I still used it later and got her services myself, plus the money back! It was the least that they deserved. A couple of months later, they were closed. The reviews on Yelp tell a lot.

[LVguy]

question when do they put new deals out for groupon and livingsocial? every Monday or something? and how long does it last? I am looking for filaseat and houseseat, so far I have yet to see any of them in either sites.

[blakely]

Originally Posted by mm57553

A lot of failing business turn to Groupon in an effort to boost business. The hope is that people will try a business because of Groupon, like it, and come back. Groupon isn't causing businesses to fold. Most were in a bad situation before that and turned to Groupon in hopes it would help change things.

Yes.

[centralaustinite]

Originally Posted by LVguy

question when do they put new deals out for groupon and livingsocial? every Monday or something? and how long does it last? I am looking for filaseat and houseseat, so far I have yet to see any of them in either sites.

I didn't realize that Groupon and Living Social were still in business!

[10scoachrick]

Well...sometimes marketing works...Got a Groupon offer for Bone Daddy's...been in Austin 6 years and have eaten at Rudy's across the highway many times, but never set foot in Bone Daddy's. At my suggestion, our TexasGunTalk group will go there Friday for lunch...could be as many as 20 folks(I think our record is 28 with most weeks being 16 or so). In this case, Groupon was just enough incentive to move me toward a 'new' business(new to me)...so happens that more than a dozen folks will follow me. Don't want to jinx them, but let's see how long they stay in business!!!

Of course, if the group didn't want to go this Friday, it would have been lil ole me eating $20 worth of ribs for twelve bucks!

[PittsburghAustin]

I ate out a lot as a single guy and a large number of the Groupon places were out of business shorty there after. If you look at YELP most had bad or so so ratings.