Sunday, May 15, 2011
The idea of on-line coupons has been around for at least a decade, but people have short memories. Groupon, LivingSocial and Buy Me Now all doing local daily coupons are making bank utilizing an old idea. The purchasing of on-line coupons is good and bad, just as long the buyer actually utilizes it. Business owners can jeopardize themselves if they don't cap out the number of sold coupons in the distribution chain. I know businesses are struggling all over the Bay Area and not just Alameda, but the idea of mass distribution of coupons also leads to non loyal customers. I wouldn't want my customer base to go to a competitor solely because their products happen to be 50% off for a day.
The bottom line is cheaper is not always better.