Pretty much anyone who is computer savvy has heard of Groupon and other group coupon websites. Groupon offers one amazing deal every day in each of its markets. Deals include everything from restaurant certificates to manicures, pedicures, massages and more, for between fifty and ninety percent off retail price. Groupon is the brainchild of Andrew Mason, who is currently the company’s CEO. With a million dollars in seed money from former employee, Eric Lefkofsky, Mason launched the company in 2008.
Businesses in each of Groupon’s markets submit deals they’d like to offer and Groupon selects just one to offer each day. Sometimes national companies, such as Amazon.com and The Gap, offer deals across the country. Deals are typically of two types: a specific service or product at a reduced price, or an amount of money to spend on goods or services. Consumers love Groupons because they offer savings on services and products they normally use as well as the opportunity to try new things without spending a fortune. It also appeals to the bargain hunter inside everyone. The company prides itself on customer service and honesty and does its best to point out any catches plainly up front, so customers are not disappointed with the Groupon experience.
Groupon, which is currently worth more than $1.3 billion, offers deals in forty-three countries, including Brazil, Germany, Mexico, and South Africa. The company offering the Groupon deal typically keeps fifty percent of the sale price and Groupon takes the other 50 percent. Each deal has a minimum quantity that must be purchased before the deal becomes active, but meeting the minimum is typically not an issue. Groupon has turned down purchase offers from both Yahoo! and Google. An initial public offering is expected in 2013.