CoverBoom's Blog

Groupon Down 30%

March 23rd, 2011 • Posted by Seth Gardenswartz • Permalink

For all of use that have been saying Groupon is a fad, we now have some numbers that may support our forecast. TechCrunch reports that Groupon's estimated US sales are down 30% for February as compared their previous high in January.

The question is why? Erick Schonfeld wonders if its a response to their taste-free superbowl ads or just a post holiday breather. I think there is a different, more fundamental explanation: US businesses have gotten smart about Groupon's business model and are looking for better ways to grow their businesses. I guess we have Groupon to thank for yet another lesson installment of "if is sounds to good to be true, look for the catch."

2 Responses...

Bob S. says:
April 4, 2011 at 7:17 AM
Yup, Groupon looks like a proverbial "race to the bottom".
Gary F. says:
April 7, 2011 at 8:22 AM
I have said it for some time, Groupon is a great sales and marketing plan for Groupon, the restaurants lose and with that in mind, I said Groupon would not last, the business model is great only for themselves and hey, they really don't care iof they go out of business now, the founders are wealthy today. Gary www.MyrtleBeachpromotions.com
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