HBS Working Knowledge recently discussed the topic with Edelman, who cowrote the paper with Harvard graduate students Sonia Jaffe (Department of Economics) and Scott Duke Kominers (Harvard Business School).Ĭarmen Nobel: How can a discount voucher service like Groupon benefit retailers?īen Edelman: Our paper looks at two distinct benefits a discount voucher service can offer. But for retailers offering the deals through Groupon, does the publicity compensate for the deep hit to profit margins? A new working paper, To Groupon or Not to Groupon: The Profitability of Deep Discounts, sets out to help small businesses decide whether offering large discount vouchers is a profitable decision. And Groupon has found a way to feature small businesses that haven't traditionally advertised online."įor consumers, there's an obvious appeal to scoring a $50 meal for 15 bucks-especially in a recession. "With the economy lagging, consumers are increasingly responsive to discounts. "Groupon has attracted remarkable interest," says Harvard Business School professor Benjamin G. Then there's the company's business model: selling discount vouchers to restaurants, spas, paintball parties, etc., at a major markdown-up to 90 percent off a retailer's usual prices-and then requiring the retailer to pay a big chunk of the voucher revenues back to Groupon.īut the Chicago-based firm is "the fastest growing company in web history," according to Forbes, and may file for an initial public offering by the end of 2011, according to the New York Times. $149.At first blush, the two-year-old online start-up Groupon seems a bit audacious.įor starters, there's the news that the deal-of-the-day website turned down a $6 billion acquisition offer from Google last month. Shop: Ella Jayne Reversible Anti-Anxiety Weighted Microfiber Blanket, $62.99 (Orig. Shoppers can find everything - from designer fragrances and hair tools to vacuums and mattresses - just by checking out Groupon’s entire goods section, or by scrolling down to see some standout deals below. In addition to these great deals, we scoured the site and found hand sanitizer and disposable, non-medical grade masks - both of which have been hard to find online and in stores these days. Some standouts include a SmileDirectClub Clear Aligner Package (including $200 off aligner treatment) for only $31 (normally $200), and a Two-Piece Legacybox Starter Kit for digitizing old VHS tapes and photos for only $26 (originally $59.99). Right now, the site is having a major sale on apparel, health, beauty and electronics, offering items up to 75 percent off regular price through Friday, April 23. The goods come from high-end designers, well-known retailers and lesser-known brands. Groupon Goods features things like apparel, beauty products, tech gadgets, home products, sports equipment and more. But for now, the goods are still here, and they’re on sale. However, it’s a bit complicated: Groupon announced earlier this year that it will discontinue its goods section by the end of 2020 to focus more on the experiences customers know and love. The online retailer, which is known for offering deals on travel and local experiences, also has a section called Groupon Goods. However, of all those sales, Groupon has some of the surprising deals worth keeping an eye on, thanks to its Groupon Goods section. Lately, it feels like almost every store is offering online sales - and lucky for us, that’s mostly true. Pricing and availability are subject to change. If you love them too and decide to purchase through the links below, we may receive a commission. Our team is dedicated to finding and telling you more about the products and deals we love.
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