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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Business lose money. Original price is $130, customer pays $70, Groupon keeps half and gives business $35.
The idea is it brings new customers in the door that spend more money later. However, that doesn’t tend happen, so Groupon has kinda gone out of style.
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