Wednesday, January 18, 2012

Should You Use Groupon?

Flickr User Jo Jakeman
I’m a self-proclaimed cheapskate, and as a customer, I love using Groupons. But a friend and I were discussing the recent horror stories we’ve heard from local business owners’ Groupon experiences.

As a small business owner, should you use Groupon or other deal-of-the-day websites to promote your business?

After reading these articles, I’d say the consensus would be: Perhaps, but use extreme caution! Check out this ‘net roundup for yourself.
The Social Media Examiner makes these important points: Groupon is not for everyone, and carefully weigh the pros and cons against your business objectives. They ask some poignant questions regarding your expectations and offer tips for success if you decide that Groupon is a solid move.
PC World focuses on the cons of using Groupon for your business. This article demonstrates how Groupon may not help you achieve promotional goals and may cost you money, branding, and client perception.

Inc. offers solid tips for using Groupon appropriately for your business’s price points, limitations, staffing levels, and marketing buzz.
So before you buy into the Groupon buzz, make sure you do your homework!
Have you used Groupon as a customer? What worked, and what didn’t? Have you thought about using deal sites for your local business?


  1. used a lot of groupons when they first hit town - bought a couple I forgot to use, but since I had "earned" money for referrals, that didn't hurt the wallet too much

    quit using them when I found out about their pyramid scheme type business plan and how it doesn't really help the business, just groupon - local businesses need our money, not a quick deal that makes them lose money

  2. Stefanie,

    I completely agree! I didn't think about their impact on a small business. I hope that businesses and customers will make more informed decisions about these sorts of deals in the future.


  3. Just reviewing your mention by my friend and Pastor, Eric Estes on Facebook. I thought I might offer a couple of useful links for your consideration. and

    A retired entrepreneur. And best of luck with your blog.

  4. Thank you! These are terrific resources. I'm looking forward to reading more about Trade Bank. I've always been interested in a barter economy, and this site is an interesting way to gain testimonials and recognition. I've also seen the Duct Tape Marketing book and will add this blog to my reading list. I appreciate the input!