Groupon

Groupon

The web accurately defines Groupon as “a deal-of-the-day website [and app] that features discounted gift certificates usable at local or national companies.” Groupon is a great win for both consumers and business owners because it effectively entices customers to “walk in the door” via discounts that start at 50 percent off and can go as high as 90 percent cheaper than the normal price while guaranteeing  business owners a minimum return on their investment and valuable and extensive exposure. How Groupon works: Bob visits groupon.com often and inputs the type of deal he’s interested in and/or signs up to receive emails featuring deals in his city. Bob then comes across an intriguing deal like a $40 worth of food for two at Random Café for only $20. Bob  can’t bypass the great deal and clicks “Buy” and enters his credit card information. Bob will only get the deal if 20 other people click the "Buy" button. This is the "group" element of Groupon. By setting a minimum number of purchases, the business is guaranteed a minimum dollar amount of sales, or else the deal is off. I’ve used groupon many times and never come across a deal that hadn’t sold out. The enormous size and value of the company accounts for its greatness. It is intended for savvy  and conscious shoppers as well as starter businesses or ones looking to gain a boost in revenue.