What is the best Groupon deal ever?
In an infographic created for the Harvard Business Review that takes a close look at the coupon company, data scientist Paul Butler has revealed the most successful Groupon ever. The runaway hit, according to the infographic, was a ‘$25 for $50 at Nordstrom Rack,’ offered across the U. S. November 24, 2010. 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.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.Other important factors to consider when researching alternatives to Groupon include customer service and price. The best overall Groupon alternative is Vagaro. Other similar apps like Groupon are Travelzoo, dealsaver, Localflavor, and Gilt.Daily-deal platforms like Groupon and Woot still attract millions of bargain-hunting shoppers. In fact, Groupon alone saw around 18 million active customers in 2023—proof that the appetite for short-term discounts hasn’t gone anywhere.But with such steep markdowns, it’s natural to question whether the savings are safe or just too good to be true. Here’s the short answer: Groupon is a legitimate marketplace that connects you with verified businesses offering real discounts.
How profitable is Groupon?
According to the 2 industry analysts covering Groupon, the consensus is that breakeven is near. They expect the company to post a final loss in 2025, before turning a profit of US$26m in 2026. The company is therefore projected to breakeven just over a year from now. However, the last few years have presented a real challenge for the business, which has seen its financial results slump. From an all-time high of three billion U. S. Groupon’s revenue dropped to just under half a million in 2024.On November 30, 2010, it was reported that Google offered $5. Groupon and was rejected on December 3, 2010. After the rejection of the Google/Groupon buy-out, Groupon proceeded with their own initial public offering.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.Contrary to the myth that Groupon always requires a 50% discount and then takes another 50% commission, our commission rate is flexible and tailored to your business. The rate depends on factors like your industry, the discount you set on your offer, your campaign structure, and more.After the deal is live, Groupon collects the revenue earned from your product or service sales and distributes them to you every 30 days. They usually take around 50% of the profit you receive from selling your product on their service.
Are groupons cheaper than regular prices?
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. Google offered to buy Groupon, then a two-year-old local e-commerce startup, for $5. But the deal fell through for three main reasons, according to writer Frank Sennett, the author of a forthcoming book on the company. Google offered a $800 million breakup fee.Other important factors to consider when researching alternatives to Groupon include customer service and price. The best overall Groupon alternative is Vagaro. Other similar apps like Groupon are Travelzoo, dealsaver, Localflavor, and Gilt.Cobone offers brilliant discounts. It is cheaper than Groupon. But, Groupon is better in terms of the service they offer. Groupon has a better reputation for quality than Cobone.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.
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 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.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.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 Deteriorates The Value Of Your Business If company X can offer a 50% discount and still make a good profit, then they must be jacking up their prices. Once a customer receives a large discount, it trains them to wait for later coupons and deteriorates the value of your products and services.
Is Groupon still a thing in 2025?
In recent years, Groupon has shifted greater focus toward higher-margin local experiences and services, phasing out lower-margin goods. As of 2025, Groupon’s Local segment in North America was the primary growth driver. 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.As of 2024, Groupon operates with a leaner workforce and has shifted focus to digital vouchers and services after discontinuing much of its physical goods segment.