There has been a sporadic backlash against Groupon and the flash sales segment of late. I've read things similar to what you speak of above .

That being said the model keeps expanding and growing, not only with Groupon on an international tear and adding vertical sales but with a host of 'copycats' everywhere.

So…the obvious question is whether certain segments are more susceptible (like spa services) than others. Has to be to some degree or else the outcry would be larger and their growth stymied.

You agree?

Thanks for the heads up on my form…fixed now

I'll ping you via email with a time to talk. I'm back in NY mid next week.

I'd love to talk. It looks like the contact form on the site doesn't work. I can be reached at erand AT lifesta.com

Eran

Yes, I saw the Groupon announcement. Logical directions if you look at their business model. Some risk but they are a smart bunch and will work through them.

Thanks for sharing your company link. I consult in the discount space and was certain that someone would build a secondary market. Interested in you distribution and branding directions if you'd like to talk. Good luck with the new company.

Thanks much for the input…and the link.

Yes…I saw the same report on Groupon's current demographics.

Questions to myself in response:

1. How much is gender a key to the model? Certainly there is a gender preference to the type of deals that Groupon offers. But if the type of deal changes (tickets to a Laker's game, driving range tickets, helicopter rides) why couldn't the gender change as well.

2. The majority of buyers on computer and gear discount sites are men…maybe they are just underserved in this local flash deal model? I don't know.

3. To Alexander's really smart analysis. I can't argue with his logic but Groupon's value against its sharp costs needs to be analyzed I believe with two factors in mind…customer acquisition and lifetime value and cost of that acquisition in margin. If that math is positive, the model works for the vendor…if not, yes, winning could be loosing for them.

There are a bunch of vertical ways to slice this pie…I'm just musing on how the industry leader continues to win when they own mindshare and their model is somewhat restricted. I'm betting they will test out a few of these to see what sticks.

I agree Groupon could expand into hard goods but they must be products that appeal to Groupon's core customer:under 35, single, university educated, women making high 5 figure or low 6 figure income . This usually means clothing, items for the pet or decorations for the loft in a major city in the US or Europe.

Women generally do not get excited about gadgets, electronic or otherwise.

I could see Pier 1, Pottery Barn, Bloomingdales, Gilt Groupe, Nordstrom's, etc being highly successful utilizing Groupons possibly in connection with thier credit card points programs.

However Alexander Muse down in Dallas, Texas thinks Groupon's shelf life is short.

Here is what he had to say:

http://www.springstage.com/article/groupon-play...

Yup…add discounts, local, social and personal profiling and you can redefine the idea of local advertising and merchandising. That is with a lot of skills, luck and good timing

The Groupon folk are in a position to make some huge changes. Was a fun exercise to take a look at their model and plot out different lines they might follow to boost revenues based on the core restrictions of their model.

Enjoy