Articles posted by Tricia Fox

Recent Comments

The High Street might be broken, but...

Very well said. Accessibility of town centres is just a joke. You might enjoy my most recent blog on a very similar subject:

23 Mar 2013 - 11:25

The ailments faced by Groupon - where is it all going wrong for the discount deal giant?

Groupon is failing because its business model is unsustainable. The cost of marketing using Groupon is as high as 80% of revenue for the business. This forces the business to keep Groupon as a one off kind of promotion or at most once or twice a year (if they are to avoid failing themselves), and forces Groupon to find a continuous stream of businesses who are willing to wipe 80% off their retail price in what is, effectively, a limited market place. How many businesses can claim to have a net margin of 400-500%? Very few I would have thought.

Been writing about Groupon on my blog for quite some time now - their problems are not unexpected, and their "me too" copy cat competitors are not offering anything different. To succeed they are going to have to seriously look at their business model.

12 Feb 2012 - 10:04

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