What is the hidden cost of using GroupOn? | Easily.co.uk Official Blog

It is profitable to use GroupOn for your business?

Let’s take the football example first. The club (in the past in London Fulham, Crystal Palace and even the “giants” of West London Chelsea have used GroupOn this season) has a number of seats that it cannot sell at full price (£40). So discounting them is an obvious option. But what is the likelihood those taking up this offer will see enough value that they will return, paying a higher price. In the case of West Ham, that higher price is close to £40 for a ticket at other games. So whilst they may fill those seats for the offer game, firstly they will only get £10 for the seat instead of the £40, but what happens if someone turns up on the day with £40 to spend and there are no seats? The other aspect to consider is what is the impact on those fans that have already purchased their £40 seats? West Ham, like other football clubs operates a membership scheme whereby for an ...

Full article: http://easily.co.uk/blog/2012/02/what-is-the-hidden-cost-...