Is Groupon Bad For Small Businesses?
July 02, 2011 at 10:18 AM EDT
If you watch the nightly news, you would assume there’s a murder on every block, and if you’ve been reading TechCrunch recently, you would assume Groupon is murdering a small business in every city. Given the hundreds of thousands of merchants who have run daily deals in the past year, it is inevitable that a few will have had bad experiences. However, to assume that a handful of these anecdotes fully represent merchants’ experiences with daily deals is insufficient and irresponsible. A series of guest blog posts by Rocky Agrawal criticize daily deals, advising small businesses to stay away based on examples of where the deals fail to turn a profit for the businesses. While Rocky’s posts are surely well-intentioned, his evidence is largely based on a few anecdotes and a basic misunderstanding of daily deal economics.