Why Groupon Might Not Be Right For Your Business

The Groupon Predicament: A Closer Look at the Costs

Are you considering diving into the Groupon world? Hold on a moment! While Groupon might seem like a fantastic opportunity to boost your business, there are some aspects you need to be aware of. One of the most significant concerns revolves around the cost structure. If your business offers high-priced products or services, Groupon’s commission-based model could be a major hit to your profits. In fact, reports indicate that Groupon charges a hefty 50% commission on each sale, and that’s not all – there’s an additional potential fee of up to 25% if they prioritize your offers. This pricing strategy often leaves businesses with razor-thin margins while relinquishing control over their campaigns. Check out the reviews on the Groupon Merchant app, and you’ll see how this predatory approach can have negative repercussions.

Beware of the Influx

Picture this scenario: Groupon’s magic works, and a wave of customers floods into your business. Sounds like a dream, right? Well, here’s the catch. If you’re not prepared to handle this sudden influx, you might find yourself drowning in a sea of orders, struggling with customer service issues, or grappling with logistical nightmares that could tarnish your reputation. While the idea of a surge in customers is enticing, without the proper infrastructure, it could lead to chaos instead of growth.

Brand Devaluation: A Price Too High

Let’s talk about the elephant in the room – the potential devaluation of your brand. Groupon’s typical terms often require you to offer hefty discounts, ranging from 50% to 70% off your regular prices. What’s worse, you might not even have control over additional discounts, causing your offerings to be practically given away. This can harm your brand’s perception in the eyes of customers, eroding the value you’ve worked so hard to build. Additionally, the customers drawn in by such promotions might not be the loyal, high-quality clientele you were hoping for. Sacrificing your brand’s worth for short-term gains rarely pays off in the long run.

Branding matters to customers.

A Ray of Light: inLo Apps as an Alternative

Now, before you start feeling overwhelmed by the potential pitfalls of Groupon, let’s talk solutions. What if you could harness the power of a service like Groupon without all the drawbacks? Enter inLo and inLo Business – a dynamic duo of marketplace apps designed to revolutionize how small businesses advertise and offer coupons. Unlike Groupon’s limitations, these apps put the control back in your hands. Say goodbye to predatory pricing, rigid terms, and brand devaluation.

Embrace Control and Flexibility with inLo Apps

Marketplace apps called inLo and inLo Business streamline advertising and couponing for small businesses without predatory pricing or limited control of Groupon. inLo aims to be every small business’ own app by offering full control and a user-friendly experience that differentiates it from the competition. inLo’s mission is clear: to empower small businesses with full control and flexibility over their promotions. With a user-friendly interface, inLo apps let you tailor your offers to match your business’s unique needs. No more feeling boxed in by Groupon’s terms – now, you can craft promotions that align perfectly with your goals. Whether you’re running a local eatery, a boutique, or a service-oriented business, inLo apps let you showcase your offerings in a way that reflects your brand’s essence.

The Bottom Line

In the world of business, choices matter. While Groupon might promise a spotlight on your brand, it comes with a set of challenges that could overshadow the benefits. Before jumping on the Groupon bandwagon, consider the alternative – inLo apps. With full control over your promotions, a friendly user experience, and a commitment to helping your business shine, inLo apps offer a path to brand recognition and success that doesn’t compromise your integrity or profits. It’s time to say goodbye to the old and embrace the new wave of couponing and advertising – the inLo way!

For more info on how to get better results from inLo, check out this article.


Best advertising platform for your small business?

How small businesses advertisement worked traditionally and their evolution

From word of mouth to newspaper, radio and TV ads, small businesses have managed to adapt and change with time to survive. Nowadays technology has moved to smartphones with popular apps such as Facebook, Instagram and TikTok. But how can small businesses use the dominant trend of handheld technology to their advantage?

What challenges might be ahead of small businesses?

Small businesses usually do not have the time or the budget to get ahead of the competition when it comes to marketing and connecting with customers besides the usual methods such as a Facebook or Instagram that needs time and dedication to post frequently enough to make a difference.

As one of the few, if your business has a big enough budget for marketing, the cost of advertising on social media adds up real quick. Also you must know that often thousands of views does not translate to clicks or revenue.

The Chronicles of Starting a “Marketing Campaign”

There is the talk of “marketing campaigns” on popular coupon apps such as Groupon and Nextdoor that promise local exposure and might be more appropriate for small businesses but there is a catch. These apps are in charge of your campaign and you have no control of when or how your ads will be shown.

Marketing campaign

Here you can read about how Groupon might not be right for your business. The predatory business model of big savings/advertising apps such as Groupon leave local businesses with no choice but to hope for return customers which would be the only justification in giving up to 75% off the usual prices.

Some marketing campaigns could end up helping small businesses, but we must keep in mind that most Groupon users are only looking for big savings. These customers are mostly bargain hunters and few of them, if any, might come back without price incentives. Groupon could be a good solution in the short run but it could also damage your brand if relied upon for too long.

But what is the alternative?

small business advertising

Alternative advertising approach for small businesses:

Focus on the long term

As a small business owner your money must go a long way and there is less room for trial and error. The world of advertising and marketing is worth billions and the competition is fierce. Big national chains exist in every industry.

You might have a restaurant, coffee shop or a bookstore and you can be certain that there are corporate counterparts to your business with high budgets for advertising and marketing. You must choose wisely and do your research on the best channels to connect with your customers and gain exposure to bring in new ones. 

Good news is that the small business sector is getting more attention from tech companies and new products are being created for them. Example of that would be Gusto, an HR company designed to help small businesses do the complicated processes of payroll and legal stuff that are needed for compliance with ease.

Introducing inLo apps

In the world of advertisement, inLo and inLo Business apps have been developed by people who have valuable experience in the small business world.

inLo apps are designed to give small businesses full control over their advertisement and provide an effective way for businesses to communicate and connect with their patrons.

inLo operates without the predatory pricing of Groupon, or the uncertainty of advertising on Facebook and Nextdoor, inLo aims to bring local exposure without the franchisee competition. 

What is the rationale for using inLo apps?

The best proven tactic that brings customers is offering savings. inLo offers small businesses a platform that provides full control on savings, without any commission, while focusing on the long term and cultivating loyalty.

The goal of inLo is to have customers that visit twice a month and spend $100, to visit one more time with a discount, and spend $130. Either way the business is making more money while having full control on their marketing campaign.

New Age of Advertisement

The new age of advertisement is here to stay and all businesses must adjust accordingly. The market chooses what is popular and works and what does not. The very existence and success of coupon apps prove that offering controlled savings is an effective advertising strategy.

Business owners must know that relying only on word of mouth is not cutting it anymore, jump on the technology train and take your business to the next level!