What’s wrong with social shopping? Part-II

Part-1 is here. So, I had a first hand experience with an Indian clone of Groupon recently. Received a whopping 50% off at a new restaurant but the entire experience was like one of those end-of-season sale where you get 80% off on all items except the ones that are really worth buying!!

I’m not sure how it’s being done in other countries but I think the businesses that use Groupon-like service should understand the difference between using it as a marketing channel and/or as a sales channel. If you just want to get rid of your old/useless inventory, then maybe Groupons are not the right vehicles. I was under the impression that you’d use Groupons (as a marketing vehicle) to introduce your best stuff to people (who otherwise may not have walked into your store); with the belief that, they’d get impressed with you and will become regular/loyal customers. I bet your not making any profit when you offer 70% off, so, you do really need people to come back. Isn’t that the whole point?

Well, I don’t think that’s happening.  

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