Some things are easy to sell using a daily deal; other things like cars are not so easy. At least that is what Groupon and a few unlucky car dealers are finding out. Groupon has been trying to refute the claim that the daily deals methodology and group buying was flawed for the last few months, but now the proof is well and truly in.
According to news sources, Groupon tried its hand at selling a car or two using their site. Four people; yes four, took up the offer and actually handed over the $200 they needed to secure a $500 voucher. The issuing dealership, LaFontaine Buick-GMC-Cadillac in Highland, Michigan, then extended the offer two more days, with even a reduced minimum for the voucher to kick in. The response? Nothing; people it seems are not keen on buying cars using Groupon. Further proof that the consumer profile of people on daily deals websites are not the type businesses can afford to spend thousands of dollars chasing.
Forking out money for movie tickets is not exactly the same as buying a car. The latter purchase requires time, and careful financial planning. The chance of someone running into a Groupon deal for $500 and having them splash out $20,000 to buy a car is slim to none. The people that can spend that kind of cash on the fly don’t use coupons—at least not the ones sourced through Groupon.
Experts are agreed on one thing: Groupon is going to go the way of the Dodo bird. It may not happen this year, or next, but its demise is inevitable.
What do you think, can Groupon weather the storm? Share your thoughts in the comments below.
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