does your GRPN curve?

Quote from krazykarl:

probably can't the first few sessions....
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I couldn't get shortable shares. No Put options available either.
The first 30 minutes would have been a great short.
 
Quote from myoffices:

we have been doing coupons for 10 years and I can tell you its the greatest business in the world. Its a spread business. Selling discounts is a win win win. If you short Groupon you are out of your mind. This IPO is more about visibility than earnings. They should be profitable in 18 months and thereafter pure profits. Its people getting businesses to give clients coupons and getting those coupons to the consumer.

Its like a coupon Bank- They don't make anything and they can use machinery to automate most of their operations.

Groupon is a real concept.
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Can you talk moure about how the coupon business works and why businesses want to do it over and over?
 
Quote from krazykarl:

Can you talk moure about how the coupon business works and why businesses want to do it over and over?
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For every consumer that comes in with the coupon that creates brand loyalty. The additional business that comes in from the coupon is additional so why would a company not want that extra traffic. Buy one get one free means that an additional experience of distributing the brand occurred.

For new products coupons make it easier too create brand awareness. Coupons are quantifiable marketing tools. They have trackable bar codes and offer marketing research for the brand.

As a business its a pay to play marketing tool.
 
Quote from myoffices:

For every consumer that comes in with the coupon that creates brand loyalty. The additional business that comes in from the coupon is additional so why would a company not want that extra traffic. Buy one get one free means that an additional experience of distributing the brand occurred.

For new products coupons make it easier too create brand awareness. Coupons are quantifiable marketing tools. They have trackable bar codes and offer marketing research for the brand.

As a business its a pay to play marketing tool.
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But coupons attract primarily a particular demographic of consumer: ones looking for a bargain. People don't use coupons becuase they're interested in buying something, they use them to save money.(e.g. a coupon for laundry detergent for one brand one week and a different the next doesn't matter to the consumer, it's all about getting the cheapest product)

I've always looked at coupons as loss-leaders, but lately I've realized coupons cause a race-to-the-bottom and only destroy a business's margins. Groupons continuing quarterly losses have only reenforced my views thus-far. I do agree it's a marketing tool.
 
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