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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It’s a huge gamble. The business loses a good deal of money in the short term via the discount and fees, but they hope to make it back by impressing you enough that you become a return customer. If you hadn’t bought from them before you got your Groupon, you either knew about the restaurant and didn’t like the price point they were selling at, or you didn’t know about them and Groupon’s advertising caught you. If the former, when the discounts stop, you probably stop buying.
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