Groupon: 50% Off What?

Recently valued at over 5 billion dollars, Groupon has taken the impact of collective buying power to new heights. Customers receive 50-90% off coupons to some of their favourite products and services under the condition that a deal sells beyond a set “tipping point” set by Groupon and its partnering suppliers.

Today; however, Groupon was under scrutiny for a deal with FTD that offered 50% off flowers over Valentine’s Day.  The coupon redirected customers to a site that sold flowers at a higher price than on their regular website.  Groupon has since cancelled the offer and have been working with FTD on a solution to remedy the negative publicity.

While it’s good to know that Groupon is listening to its customers and taking corrective action, what do you think Groupon should do to prevent this in the future?  Though many subscribe to the belief that customers are always right – should they have been surprised that there would be a mark-up on flowers on the week of Valentine’s Day?

I’d love to hear your thoughts.

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2 Responses

  1. No surprise that companies would mark up prices around Valentine’s day. Lots of companies take advantage of demand around Valentines Day, but FTD should be smarter about how it promotes its products. The inequity is the issue, not the fact that companies raise prices around Valentine’s Day.

  2. I agree that FTD should more clearly describe their promotions to ensure they are not deceiving potential customers. Generally, Groupon promotions are about exposing consumers to great products and developing brand loyal customers – not making money. Just as important, I believe Groupon should have a written policy to avoid this type of deception it its coupons.

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