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Larry Bruce

Larry Bruce Founder / President / CEO

Exclusive Blog Posts

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A Lesson From Groupon

Who are we putting in charge of our business?

As I watched this video of Groupon’s CEO Andrew Mason apologizing for a business in Japan that couldn’t handle the orders that Groupon generated for them over New Years I couldn’t stop thinking; VIDEO

“Here is a vendor that set a marketing strategy in place for a business using price positioning and email executed on it and then when the business wasn’t prepared to deliver, HE’S apologizing to HIS customers for it?” A nobal gesture.

This is amazing, these businesses that work with Groupon have virtually no margin in what they sell through that channel, they are told what they need to price or discount their services at to work with Groupon and all the while making the customer more and more loyal to Groupon, Yes Groupon looks at the customers at their customers not the businesses customers…

How did Groupon get their customers? Do they have a product to sell? NO they got those customers on the backs of the business they convinced to deeply discount their product to get Groupon the loyalty they have at the businesses cost not Groupon, in fact Groupon got paid to do it.

"Groupon bought its loyalty with money from its clients"

HMMM who does that sound like in the Retail Auto Industry?

Wake up dealers take charge of your own marketing or you’re going to end up like these small business sheep that follow Groupon to the slaughter.

Terrence Gordon
Larry, I could not disagree more. Groupon's strategy is obviously to grow their user base, but the businesses that participate are "advertising" their services. They aren't expecting to make money off the one offer pushed through Groupon. They are using Groupon as a massively popular distribution point for their message. It's the most genius form of advertising I've seen - getting potential clients to engage with your local business by giving them a taste of what you're offering. It's a win-win for the Consumer, the Business AND Groupon.
Terrence Gordon
Larry, I could not disagree more. Groupon's strategy is obviously to grow their user base, but the businesses that participate are "advertising" their services. They aren't expecting to make money off the one offer pushed through Groupon. They are using Groupon as a massively popular distribution point for their message. It's the most genius form of advertising I've seen - getting potential clients to engage with your local business by giving them a taste of what you're offering. It's a win-win for the Consumer, the Business AND Groupon.
Larry Bruce
Terrence, if you ask 10 people "Why do you like Groupon so much?" the answer would be 10 out of 10 times "Because they send me great deals" That kind of bought loyalty is easily bought by the next low coupon from Groupon and the taste you discounted your service for is erased from the customers memory. That's not worth the price of admission if you ask me.

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