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As Groupon Reports a Record fourth Quarter Loss, New Site Everydayoffers.co.uk Promises to Put an End to the Huge Commissions charged by Voucher Sites
Monday, 13 February 2012
On Thursday 9th February 2012, Groupon reported a huge fourth quarter loss of $42million. Whilst it blamed the loss on its rapid expansion into new markets, Denis Kondopoulos from everydayoffers.co.uk believes that the answer lies a little closer to its relationship with the businesses they work with.
“Sites such as Groupon present great value to the consumer, but they can be unfair to businesses, as they charge businesses a very high commission per sale. This, combined with asking companies to reduce the price of their product /service by up to 90% can be crippling, and I think businesses are now fighting back.”
Within the last 3 years, Groupon has grown rapidly, and so has the popularity of voucher sites. Many of them work by offering deals at a reduced price of between 60 – 90% off, and then charging a commission from the sale price. For some businesses such as restaurants, this may work well as customers are more likely to buy extra products. For most businesses, however, the margins are very small, and in the most extreme cases, businesses can be forced to close because of high customer demand, and low margins. Everydayoffers.co.uk takes a rather different approach. Rather than charging a commission per sale, businesses can pay a small one fee to advertise their deal. All of the money made from the deal goes straight back to the business. This helps businesses to manage their costs, and presents a very real discount site where everyone benefits. In addition, it is the only voucher site to offer b2b services, so even lawyers and accountants can market their services.
“In these economic times, businesses should be helping others to grow, not capitalising on the climate. We present a real alternative that supports businesses, and gives great value to end-users,” concludes Denis.
- Ends -
Editors notes: www.everydayoffers.co.uk will be live by the end of February. To receive information about forthcoming deals or to sign up as a merchant, please visit http://www.everydayoffers.co.uk
For more information, or to interview Denis, please contact:
Haddy Folivi from Clarity Media Communications
Tel: 07957 278 581
E: haddy@claritymediacomms.com
Comments closed Sunday 23 October 2011 - 18:59:01 admin
