Coupon sites are history

In Internet on 05/10/2011 at 11:20 am

Or why Groupn may never IPO. Its founders should have taken Google’s US$6bn, and ran.

  1. That’s why even 12 months ago, many financial blogs and quite a number of business analysts already scratching their heads as to long term viability of such businesses. They did extensive studies of the companies using such deals and the people buying these deals. Not good. Majority (90++%) of companies swore never to use these again. And 90% of customers are cheapos with Sheng Shiong and $1.99 shop mentality. No chance of up-selling or even cross-selling. E.g. Going to a french restaurant during dinner time and just ordering the specific dessert with the half-price coupon. And then sitting there for 1 hour chit-chatting.

    Many independent websites have warned against investors buying their shares if they ever went for IPO.

    So far, the local businesses I’ve patronised and who had used such deals have swore off them. This includes restaurants, salons, spas. Out of 10, I got 0 repeat customers. They’d rather hold their own promotion activities.

  2. IPO are actually borrowings. Similarly to bonds as you can see what have happened to Laymans. Its sort licence gambling.

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