Groupon’s first ever car deal was a flop

Posted by amabaie under Sales
From http://www.automonster.ca 3749 days ago
Made Hot by: businessavante on July 20, 2011 8:40 pm

Not everyone’s a winner in the Groupon arena. Last week, the online coupon giant launched its first effort to get into big-ticket retail, with a $500 voucher toward a new car sale at a Michigan dealership.

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Comments

Written by JohnH
3747 days ago

It would have worked just fine if Groupon would have offered 50% off. :-) Seriously though, when Bizydeal.com (a B2B daily deal) got started their first deal was 50% off one of those new Ford commercial vans. Of course,they were only offering one van. It got them a little buzz, but I don't think they've ever really taken off yet.

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Written by Adam_Gottlieb
3749 days ago

I saw the orignal article earlier this week. Aside from all the reasons provided as to why the deal flopped, the biggest factor is that the big ticket purchses are totally not suited to Groupon's model. Most of Groupon's customers may not actually be looking for the deals they opt into. For many, the draw could be in the feeling that they are getting a good deal, and that feeling alone is worth the purchase *even* if they don't cash in on it.

With big ticket items, people would have to already be in the market (or at least considering it) to opt in. Perhaps a better model: a site where those who are wavering on some significant purchases, could band together and receive a significant discount for agreeing to make the purchase within a given time frame.

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