Groupon: How does it work?
Many of you may have seen advertisements for a group buying website called Groupon (some maybe even on this or other hubs). Often they tout deals like "[your city here] at 90% off!" or "One ridiculous deal in [your town]". Many people simply gloss over them as a blatant advertising gimmick. You may even be thinking you have to give private information or that it is a scam. I can tell you for a fact that it is none of those things
Groupon works on the same philosophy as a supermarket when it offers "loss leaders". Loss leaders get people in the door, and when they are there, they buy other stuff. You may even return after you have seen some of the things they have to offer. Groupon works the same way. Merchants offer deep discounts (generally 50% or more) through Groupon to get people to try their service or products the first time. Hopefully people like what they have to offer and buy other products and/or return again, this time purchasing at full price. Granted, they rarely get to the advertised 90% threshold, but 75% off is still a good deal.
Read more about Saving Money with Groupon
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