Dave's Take On Groupon

A Twitter listener asks Dave how he feels about sites like Groupon. Dave explains how Groupon works and gives his take on it.

QUESTION: A Twitter listener asks Dave how he feels about sites like Groupon. Dave explains how Groupon works and gives his take on it.

ANSWER: Groupon is a company that, when you sign up with them, they send you an email of the day with a special offer that a business in your area has going on. If enough people sign up for the special, the special kicks in. It could be haircuts at 50% off, or massages at 70% off, or meals or whatever.

The good thing about Groupon is that you can get some great deals. The bad news is that it will drive you crazy because it comes every day. I think that they provide some goofy stuff sometimes because they are under so much pressure to provide a deal. It can be a little silly at times, but it can also be addicting. It can be like bidding on eBay. You may get sucked into it and start buying stuff that you don’t need.

The down side of Groupon is like the downside of a warehouse club. You can buy things you don’t need at volumes you don’t need. Overall, though, I would give Groupon a great rating. I admire their business acumen because they’ve done a great job. I’m a fan, and I think you can do Groupon and be all right. But use restraint, and don’t get too caught up in craziness.

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