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Re: billpr post# 41187

Wednesday, 05/24/2017 9:14:56 AM

Wednesday, May 24, 2017 9:14:56 AM

Post# of 53798
Groupons exist to bring in business. I have no idea what the average customer pays per visit, but I'm guessing that most of the 1800 purchasers will show up in their groups of 2 or 4. That's 3600-7200 likely customers, each one eating and drinking. In a perfect world, perhaps even that many more than they would have had if they had not run the promotion. I'm no business wiz, but (3600-7200)x(avg spending per customer)=(a lot closer to $millions) than 0x0.

https://www.rhsmith.umd.edu/news/escaping-groupon-curse-restaurants

Restaurants often come across as desperate when they offer Groupon-style deals, but a new study from the University of Maryland's Robert H. Smith School of Business suggests that certain types of venues can escape the damage to their reputations. That's because the negative effect tends to be concentrated on restaurants at lower price points. In the case of upscale restaurants, offering a deal either does not hurt the reputation or actually boosts it — probably because customers view those restaurants as more confident, offering the deal from a position of strength.

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