I 'm interested in hearing what peopleís thoughts or experiences are of "the words fastest growing company"....
As far as I can tell Groupon can generate a lot of footfall for the retail industry but how can it be profitable (for the retailer) with such heavy discounting.
Obviously itís just another channel in the marketing mix of drumming up interest and would be advantages for clearing stock, but for winning new customers in the long run I'm not too sure.
Interested in your thoughts.
What groupon can get??
First, Groupon ask a high commission rate from the suppliers of the deals.
Second, the will first get the money from the customers, but they won't pay the money to cooperatior, they will keep the money for at least 30 days.With the money, in 30 days, the bank interest will be a large number of money.
Third,A way to collect customer informations, and then they can sell this kind information or themself can use this infrmation to send EDM letters. And so on.
Forth, the samples, they usually ask for free samples
Anyhow, group buying way is a good way, but this way is not equal to the suppliers now.
If the price of your products are not competitive to most of the suppliers, you will be kicked out.