Share

Why Groupon was bad for business

Cape Town - While the majority of consumers have expressed shock over the closure of Groupon SA, a few others are not sad.

Fin24 has been inundated with messages from Groupon SA users sharing how the vouchers purchased on the website allowed them to have discounts on meals, outdoor activities, weekend getaways, skincare and beauty treatments and online courses.

READ: 'We're sad to see Groupon SA die' - Fin24 users

However, there were also those who were happy to see Groupon close shop.

Dianne Faktor said she isn't surprised that the the world’s biggest group-buying and deals website is exiting South Africa.

"I did my own research when they first launched in South Africa and was shocked that whatever price the supplier charged on a voucher, Groupon took 50% of that."

She said this meant that dealers were losing out on any products or services they supplied and delivered.

"Suppliers would do better to advertise and offer their own specials, on some or all of the major social networking sites, instead of allowing Groupon to take 50% of the already discounted price," Faktor suggested.

"I never understood how any business, offering Groupon vouchers, could do anything but lose on the deal, unless they gave a maximum of 20% off. This closure is a good example of what happens when corporates and people get greedy!"

Joy Pieterse also complained about the re-hashed deals on the website. "It appeared as if they took any deal they could get."

She explained that she had 5-star spa-experiences in an establishment with peeling paint and holes in the massage couches. She went on to claim that certain restaurants had  “Groupon-portions” that was half the size of their regular portions.

"I have never been back to any establishment that I visited on a Groupon, whether the experience was 5-star on no-star."

Another Fin24 user said Groupon had become an annoyance to her.

"I was trying to get rid of them for months – glad they’re going – don’t need them – they became pests," Rabecca wrote. "I’ll be happy if they’re gone for good!" she added.

Arthur Goldstuck, managing director of World Wide Worx, said he’s not surprised that Groupon has run into difficulty.

"The fundamental flaw is that people get hooked on the discounts and not the suppliers," he told City Press.

Siphi Madonsela indicated that she is probably part of the reason why Groupon is closing.

"I kept going back to Groupon for the discounts but never went back to the same place of business, unless it was back on special."

Read Fin24's top stories trending on Twitter:

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
19.04
-0.1%
Rand - Pound
23.80
-0.0%
Rand - Euro
20.41
-0.0%
Rand - Aus dollar
12.42
-0.2%
Rand - Yen
0.12
+0.2%
Platinum
931.00
+0.6%
Palladium
995.00
+0.5%
Gold
2,335.03
+0.1%
Silver
27.52
+0.3%
Brent Crude
89.01
+1.1%
Top 40
68,437
0.0%
All Share
74,329
0.0%
Resource 10
62,119
0.0%
Industrial 25
102,531
0.0%
Financial 15
15,802
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders