Wednesday, April 13, 2011

The Daily Deal!

April 13, 2011
Daily deal avalanche swamping U.S. merchants

Groupon pays the merchant upfront but keeps half the purchase price of each offer, plus a charge to the merchant for the credit card transaction fee. That adds up, for example, to less than $10 to the merchant for each $20 Groupon offer purchased. The consumer then redeems that offer for $40 worth of goods or services.

From where I sit, merchants borrow $10 "upfront" but then need to pay back $40 worth of goods and services.

“If the customer spends exactly $40, you lose money,” Benecky said.

You think?

3 comments:

Anonymous said...

http://www.kitco.com/reports/KitcoNewsMarketNuggets20110414.html

Aluminum tsunami coming--just wante y'all to be the first to know :).

getyourselfconnected said...

Groupon is a joke.

Stagflationary Mark said...

Saw aluminum foil at Sam's Club today.

It is competing for Progresso soup as the least likely things investors feel the need to hoard apparently.

I keep waiting for inflation to appear in either of them. Go figure.

That said, the CPI ran a bit hot again today. It was mostly expected though, thanks to rising energy prices.

As for Groupon, the biggest joke would be a Groupon hug! Oh how I cringe at the thought of that, lol. ;)