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Groupon?

Has anyone looked into Groupon or used it. I see they have a "Groupon Now" format - which seems to be something you can start/stop on your smart phone throughout the day.

They don't give much out in terms of what they expect from you - anyone know?

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You're asking for a meltdown. There was a recent story about a bakery that used Groupon and the response to that deal was so overwhelming to that business it almost shut them down because they had way too many orders to fill.
We've had a couple restaurants in the area that have closed down after a Groupon deal. I think they expect you to price the deal to the point where you lose money. It's supposed to build your future business, but if you don't have enough money to sustain your current business at a loss, then you're setting yourself up for disaster.
Ahhh... well, that makes sense why they'd want you to price it as such ... and understandable how a company would have to shut down after that if they didn't have enough cash to sustain themselves for basically giving away services/product.
I participated in a call regarding groupon, and they gave some tips...

Set a limit for the number of items you can sell (so you don't sell 1000 of them), but remember that not everyone will use the groupon they buy, so increase it a bit to allow for that. (If you can afford 50, include 65-75.)

Depending on the state they are sold in, they may never expire, so keep that in mind.

They expect a discounted rate to their members...1/3 to 1/2 to 3/4 off retail. In addition, they take a portion of that discounted rate as payment...so if you sell a $50 item for $25, you receive $12.50 for it after groupon's cut (if I remember correctly...I think it was 50% of the deal.) So, make sure that there is an upsell available in every case. If your average sale is $35, perhaps offer a $10 for $20 gift certificate. That would give you $20 cash ($5 groupon + $15 addl sale) for a $35 transaction.

That's all I can remember this early in the morning...but tread carefully. It works great for services (such as wedding/portfolio photographers who would then expect photos to be bought afterwards), but not for everyone, especially at the deep rates that would need to be offered. Unless you have merchandise to move, and most of your clients become repeat customers...then you are offering an introductory rate. : )

Good luck!
great info!
Thank you Jennifer !! That's exactly the info I was looking for!
On Nightline they had a story about Groupon! They said it isn't good for business to use it.

I sold a card on another site and they used Groupon. I wouldn't recommend an artist to use them.
groupon is just like heartsy. You buy a gc for half price and it's suppose to bring you traffic to your restaurant. I've bought a ton of groupon cert and it's a steal for me since most of the restaurants I'm familiar with.
Great thread, I was just thinking about this the other day while watching Shark Tank.

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