Groupon, the company that connects customers with deals at local businesses, can seem an attractive way to cut advertising costs. Yet, some have said that the company’s cash flow structure has left them vulnerable, and that businesses and consumers stand to suffer in the long term.
A recent series of articles on TechCrunch.com have questioned the value of Groupon deals for small businesses. Last year, the New York Times ran a series of blog items encouraging business owners to think through the math before agreeing to a Groupon deal.
Business owners who are considering a Groupon should think about how they relate to their customers. Do you already have a steady repeat customer base? Will the coupon bring in new customers, or will it mostly draw your regular clientele? What are your average advertising costs?
As always, small business owners should work to be informed before committing themselves to a deal. Learn more about breaking into the daily deals space.
Read more at TechCrunch.