This is not necessarily a bad move on Groupon's part. The downside, he claims, is that consumers who have essentially committed to buying or leasing are losing their negotiating power. The simple fix for this, is go into the dealership and shop around before presenting the coupon. It works out especially well for Groupon as they produce higher revenue per coupon sold.
This also fixes the problem that small shops and services have when discounting 50 to 60 percent where they are losing money, and are using Groupon more as a marketing tool to get new customers in the door. In the case of the auto retailer, they are not giving 50 percent discouts, more like a 1-3% depending on the car price.
This is win-win essentially, but only if I am looking for a new car at so and so automotive.
This also fixes the problem that small shops and services have when discounting 50 to 60 percent where they are losing money, and are using Groupon more as a marketing tool to get new customers in the door. In the case of the auto retailer, they are not giving 50 percent discouts, more like a 1-3% depending on the car price.
This is win-win essentially, but only if I am looking for a new car at so and so automotive.