12 Volt: Groupon & Its Imitators
Groupon and its competitors can be a double-edged sword. There is no doubt that Groupon can generate sales and traffic. However, we can compare it to your shop's tablesaw. It is a handy and powerful tool, but if you don't know what you are doing you can lose fingers quickly.
Another Groupon analogy that really works is you and your staff making a big pot of soup but only armed to eat it with a fork. You and your staff work really hard eating it but don't really get anywhere. It's a lot of labor without a lot of profit. Undercharging for labor is a surefire way to busywork your staff while reducing morale. On the other hand, Groupon, like a tablesaw or a soup ladle is a specific tool. If you use it tactically, it can help boost your sales and traffic, especially during those slow times.
Groupon Case Studies