Can you trust Groupon deals?
If you’re wondering “Is Groupon legit? Groupon has grown into a giant marketplace with over 63,000 reviews on Trustpilot and a solid TrustScore of 4 out of 5. About 63% of users give it a 5-star rating, which means most customers find value in the deals. The company partners with providers of goods and services by hosting a discount deal and keeping a percentage of the profit as a marketing fee. That percent varies, but the reported average is 50%. Unlike a standard coupon, a groupon lets consumers pay the discounted price for goods in advance by purchasing the deal.The deals offered daily through Groupon start at 50 percent off and can go as high as 90 percent cheaper than the normal price. Groupon can offer such steep discounts because it guarantees business owners a minimum return on their investment and the possibility of becoming an overnight sensation.Groupon makes money from fees paid by merchants whose customers use their coupons, and the businesses gain attention and patronage from consumers. Groupon isn’t the only company that offers this service—it competes with RetailMeNot, Rakuten, Slickdeals, DealPlus, and many others.Remember that there’s no discount on great service—always be sure tip on the full amount of the pre-discounted bill. Groupon can bring a lot of new people to the business in a short amount of time, so if the business seems extra busy, please be patient.
Can you trust Groupon tickets?
Yes—payments and vouchers are handled by Groupon, and there’s a published refund policy covering many scenarios. Still, read the fine print and merchant reviews, especially for travel and ticketed events, where issues are more common. For Local Deals, customers can return any unredeemed Groupon for a refund of the amount paid within the first three days after purchase. After that, all sales are final unless stated otherwise in the Fine Print.Additionally, any unredeemed voucher may be returned to us within the first three days of purchase for a refund of the amount paid unless the deal is marked as final sale. After that three day time period, Groupon will not refund any voucher and all sales are final, unless otherwise stated in the Fine Print.Additionally, any unredeemed voucher may be returned to us within the first three days of purchase for a refund of the amount paid unless the deal is marked as final sale. After that three day time period, Groupon will not refund any voucher and all sales are final, unless otherwise stated in the Fine Print.If you buy a Groupon voucher for a local business or a getaway, you can cancel it yourself within one day of buying it for a full refund. Or, if it has been less than three days since you bought the voucher, you can ask customer service for a refund.
Is Groupon still trustworthy?
Here’s the short answer: Groupon is a legitimate marketplace that connects you with verified businesses offering real discounts. Still, your experience depends on reading the fine print, understanding how vouchers work, and knowing when Groupon—not the merchant—handles refunds. Other important factors to consider when researching alternatives to Groupon include price and customer service. The best overall Groupon alternative is Vagaro. Other similar apps like Groupon are Travelzoo, dealsaver, Localflavor, and Gilt.Best Alternatives to Groupon There are several sites that offer a similar business model, like LivingSocial, Yipit, or Woot.
Why are things so cheap on Groupon?
The deals offered daily through Groupon start at 50 percent off and can go as high as 90 percent cheaper than the normal price. Groupon can offer such steep discounts because it guarantees business owners a minimum return on their investment and the possibility of becoming an overnight sensation. Groupon’s business model relied heavily on offering deep discounts to attract customers, which did not result in long-term customer loyalty for the merchants. Many businesses complained that the deals were not profitable and did not lead to repeat customers.Bad Branding. Offering deep discounts on your products/services can be a bad thing for your business because bargain hunters are unlikely to come back and purchase your products at full price. And you could potentially be devaluing your product in the eyes of your existing/regular customers.
Why did people stop using Groupon?
Groupon is a great way for businesses to get noticed, but it also comes with some drawbacks. When businesses list deals on Groupon, they have to offer steep discounts, and then Groupon takes a big cut of the revenue. That means less money going back into improving our lanes, food, arcade, and overall experience. Summary. Shares of Groupon have continued to slide, as revenue trends worsen despite higher marketing spend. Groupon’s business model suffers from dis-economies of scale, requiring costly sales efforts to chase local deals, leading to a vicious cycle of revenue decline and expense cuts.Problems with low business efficiency began to surface, translating into weak profitability. While revenues initially grew significantly, so did costs, and operating margins remained low as a result. To attract new customers, Groupon had to offer steep discounts. But these did not bring merchants long-term customers.Groupon Hurts Loyal Customers Using Groupon has a similar effect on your regulars and your loyal customer base. By taking a loss using Groupon to obtain new customers, you are essentially forcing your loyal customers to make up for your losses. And this is counter-intuitive to the way you should be doing business.
Why is Groupon not popular anymore?
The customers they won with damagingly low deals on Groupon did not become loyal customers but moved on to exploit the next amazing deal, leaving small businesses with only the costs. As a result, they pulled back from their deals, and Groupon had to expensively acquire new businesses to keep the deals site full. The amount the consumer paid for the Groupon Voucher does not expire until the voucher is used or is refunded. Therefore, Groupon’s policies suggest that you have always been able to redeem an expired Groupon Voucher with the merchant for the value you paid for the voucher.Additionally, any unredeemed voucher may be returned to us within the first three days of purchase for a refund of the amount paid unless the deal is marked as final sale. After that three day time period, Groupon will not refund any voucher and all sales are final, unless otherwise stated in the Fine Print.Expiration Dates – As a customer you have until the expiration date on your Groupon voucher to book your session with our merchant partner. After that date, you will owe the merchant partner the difference of the regular retail value of the service and the price that you paid towards your voucher.Groupon deals are normally set up so that the actual cash value of the purchase price never expires, but the promotional value expires after perhaps 90 to 180 days.