I Stand By My Statement That Groupon Will Be Dead In The Water. [Competition]

Posted: July 11, 2011 in News, Opinion
Tags: ,

SAN FRANCISCO (AP) — Groupon’s online coupons save people cash, but they’re not always great deals for merchants. Some businesses complain that bargain hunters rarely return after scoring a cheap meal or massage.

A new site called LevelUp believes it has a way for restaurants, nail salons and other local businesses to keep people coming back. To drum up repeat business, the company offers consumers a series of three deals, each better than the one before.

Online deal sites abound, but LevelUp hopes to stand out by giving people an initial offer that’s on par with competitors’ — and following that up with even better deals. After three visits, LevelUp figures that customers will be familiar with the merchant enough to return, even without discounts. 

The harsh reality of the online coupon business is that the concept of offering customers deep discounts is easy to replicate. All you need is a sales team to craft deals with merchants, and an email service for blasting those offers to people who sign up on a website. 

LevelUp comes from the folks behind Scvngr (pronounced “scavenger”), a mobile-gaming startup in Cambridge, Mass., created by 22-year-old Princeton dropout Seth Priebatsch.

LevelUp, whose name is gamer-speak for the act of rising to a higher status in a video game, launched in Boston and Philadelphia in March. It plans to expand this summer to major markets such as San Francisco, New York and Chicago, the home turf of market leader Groupon. Most of the businesses it works with are local, but deals have included larger brands, such as Levi’s.

Full Article Here –>  Challenge to Groupon\’s model with trio of deals

Comments
  1. […] Check here –> Groupon’s Hug IPO May All Have Been For Nothing. or here –> I Stand By My Statement That Groupon Will Be Dead In The Water. [Competition] .  Now almost 4 months later that numbers are making my predictions the TRUTH. Sell Groupon […]

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