Saturday, June 11, 2011

Groupon Disaster

by Rocky Agrawal

"Groupon was the single worst decision I have ever made as a business owner."

“How much is your average sale here?”

“It’s about five dollars.”

That one question told me Jessie Burke had been sold an unsuitable product. Her average sale was $5 and her Groupon rep had convinced her to run a Groupon for $13.

I already knew how the story ended. Jessie had posted about her experience running a Groupon for Posies Cafe on her blog. She calls running a Groupon “the single worst decision I have ever made as a business owner thus far.” You can read the story in Jessie’s own words.

I wanted to drill deeper and get at the why. I sat with her for an extended conversation. This is only one business owner’s experience, but it is a story worth retelling.


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