On the heels of Groupon's recent lawsuit regarding illegal expiration dates, the company is taking more heat.
The Wall Street Journal found that merchants who used deal-a-day sites "regularly absorbed as much as 75% of a deal's cost and often saw little in the way of repeat business." In typical deals, buyers pay $25 for $50 worth of goods--$12.50 goes the to deal site for, uh, sending out an email, and $12.50 goes to the retailer to provide $50 worth of goods or services. But now, with so many deal-a-day sites competing for business, savvy merchants are negotiating more favorable splits.[jump]
Smart Money points out 10 things coupon buyers should watch for--including the fact that a whopping 40% of vouchers purchased don't get redeemed!
Gawker, of course, jumps into the fray talking to burned business owners and disgruntled copywriters, while Eater republished this lovely anti-discount poem from the owner of New York's Klee Brasserie.
Despite its seemingly usurious business practices, Groupon's revenues continue to skyrocket, TechCrunch reports.