Group buying may be all the rage among consumers. But does is really make good business sense? Yes it can if you design the promotion just right for your company.
Groupon, the group buying site offering daily deals, has proven to be wildly popular with consumers. Great discounts are given for restaurants, retail stores, spas, theaters and much more. What’s more appealing than scoring a $100 massage for $25 or grabbing a meal valued at $50 for $15? People love discounts, especially during hard times when money is tight.Investors also are enamored with Groupon. Google famously offered to buy the site for $6 billion but got rejected. Now all eyes are on the Chicago-based firm to file for an initial public offering before the year ends. A Groupon IPO will likely generate a fortune for early investors, according to market analysts. Launched in 2008, Groupon is a fast growing company, having transformed the world of online shopping. It has boosted the number of markets where it operates to 500 and has 70 million subscribers. It has a staff of 1,500 working at locations in cities throughout the U.S. and across 29 countries. The company is rumored to have generated $760 million in revenue for 2010, up from $33 million in 2009.