Lets say if you go to an auto shop, they charge you $130 for a wheel alignment. On Groupon, this same business charges $130 but since Groupon has a 30% off coupon, the price is now $70. So do Groupon pay that business for the 30% of that promotion or how does itwork?
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The way that coupons work is that they are put on products that a company have overstocked, that is about to expire, that has not been selling well, or that is connected to other products with good profit margins. Things for services are similar in that they will typically sell additional services or products when you come in for the discounted service.
Group coupon companies like Groupon are third parties that do this sort of thing for a company. Not only do they discount the product/service, they take a cut of the fee that is in place and give the business even less money than they would get with an in house sale. This can work for some businesses if it brings in new customers and they buy a lot of other things or services, but it is not typically a good things and it is why third party services like Groupon are getting fewer and fewer participating businesses.
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