Is Groupon Good for Your Business? The Facts!
5th June 2011
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Is Groupon Good for Your Business?

I’m pretty sure most people will have heard of Groupon or seen the banners all over the web (they invest heavily in ‘Banner Re-targeting) for those who haven’t, Groupon is the largest and by far the most successful coupon buying site, where you buy deals - Groupon deals offer a minimum 50% discount and can go as deep as 70% or 80%.

With discounts up to 80% it’s not hard to understand why Groupon is so popular with consumers…. But is it Good for YOUR business?

Well check this headline out…!

Over 900 people took up a Groupon offer – Generating over £6000 in sales!

Sounds pretty impressive? Well doesn’t it?

Now read this!

You reduce the price of your product or service by 50% to become a featured business on the Groupon network – Groupon promotes the deal and gets customers through your door (over 900 in this case). For every deal sold Groupon receives between 30% and 60% of your all ready drastically reduced price!

This is worth repeating - For every deal sold Groupon receives between 30% and 60% of your drastically reduced price!

But hey, so what – They got over 900 new customers!

Let’s do the maths.

Firstly, this is a genuine case study of an offer run by a restaurant in Coventry on Groupon.

The offer:

Two Course Meal for Two People for £15.00 - Worth up to £39.80!

That’s two starters and two main meals


Over 900 deals were sold:


The offer generated approx £6750.00 for the restaurant.

The offer generated approx £6750.00 for the Groupon.

Whilst I am not privy to the amount of people who took up the offer and never redeemed it, what we know for sure is:

Groupon received £7.50 (50%) of the offer price whether it was redeemed or not.

The Restaurant received £7.50 for each deal sold

In short for £7.50 the restaurant provided two starters such as scallops, king prawns etc and two main meals such as sea bass, rib eye beef etc

That’s £3.75 per person!

Would you consider this as good business? It sure was a good deal for Groupon and a great offer for consumers!

The moral of the story is – Before you utilise offers within your business it’s essential you know your numbers, Percentage offers impact on profit margins and all offers should increase your bottom line!

Get your FREE guide on how to use Groupon effectively, the pros and cons of using Groupon, what types of businesses should use Groupon and what types of businesses shouldn’t and what makes a good offer for Your Business not just your customers and Groupon!

If you would like to receive the Guide simply fill in the form below!

Have you used Groupon offers for business? We would love to hear about it!

What was the offer? Was it a success? Would you do it again?

Just leave a comment below.

Ps. Looking for Offers – Click Here!

PPs. If you would like to recieve the Groupon Guide fill in the box below

Groupon Guidelines

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About the Author

Paul Jones VIP .

Member since: 13th December 2011

Paul Jones VIP, Coventry kid - Known as the 'Value Information Provider (VIP) and Engagement Specialist' within some circles (usually crop circles!) Doesn’t take life too seriously in case you hadn't...

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