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Why Groupon might not be a good fit for you


August 27, 2010
By Amanda Ryder

Aug. 27, 2010 – Groupon, an internet coupon website, has received a lot of media hype
in the past few weeks and has been praised for its ability to bring
thousands of new customers to both large and small businesses. But does
it do more harm than good?

Aug. 27, 2010 – Groupon, an internet coupon website, has received a lot
of media hype
in the past few weeks and has been praised for its
ability to bring thousands of new customers to both large and small
businesses. But does it do more harm than good?

The website allows businesses in major Canadian and U.S. cities to
offer Groupon members a deal of the day. If a certain number of people
sign up for the deal, then the deal becomes available to everyone
(hence the name – a combination of "group" and "coupon"). If it doesn't
attract enough interested people, the deal is canceled. The deal could
a percentage of a service or a product – the Gap made headlines
when it became the site's first national promotion. Groupon profits by
taking a cut of each coupon – for example, if a retailer is offering a
$50 service for $25, then Group takes 50 per cent of $25.

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When the website started, it was initially geared at helping small
businesses and local retailers get the word out about their store.
Despite the hype, Groupon hasn't been a positive experience for
everyone and some experts caution that using such a promotion can leave
a deep cut in your bottom line. Here's a look at one retailer's
negative experience via a recent posting on RetailDoc.com. READ MORE


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