Game On With Groupon

As co-owner of Savvy Cellar Wine Bar & Wine Shop, I get to experiment with promotional services that are designed to help local businesses.  Over the course of several years we’ve tried (no particular order):  Google Adwords, Yahoo! Local, MerchantCircle, Local Newspapers, Local Magazines, Email, Twitter, Facebook, FourSquare, Peninsula Shops, Movie Theater Advertising, Rumbafish and now Groupon.

Groupon is an online coupon site.  It is organized by major metro markets in the US.  Each day they feature something unique to do in the local market (restaurants, spas, entertainment, etc.) at a special “group” price.  There is a minimum level set for each offer – meaning that a certain # of people have to sign up for the daily groupon in order for everyone to get it.  This drives sharing among friends on social networks.  If enough people opt to take the offer, then the offer is “on”.  At the end of the day, everyone who took the offer is charged.  Then Groupon takes their cut 40-60% and pays the merchant the balance.
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