In response to:

Groupon's Growing Crisis

Wally123 Wrote: Apr 05, 2012 10:11 AM
I can't understand why Groupon got off the ground in the first place. Why would anyone pay for a coupon or discount voucher when tens of thousands that are equal to or better than the value of Groupon's are widely available on the Internet, in mailings, in newspapers, etc. every day. I have never bought one and never will
Spikeygrrl Wrote: Apr 11, 2012 7:59 PM
Ummmm. I think you may have misunderstood how Groupon works. You are not "buying a coupon," you are buying goods and/or services at a discounted rate.

As a military wife I move every few years, often to cities and towns I've never even visited before. Groupon allows my family and me to explore local retail, entertainment, and healthcare businesses (just to name a few) that I never would have heard about otherwise, at an average 50% off regular prices. I buy something from them at least once every couple of months.
WallyOzzy Wrote: Apr 05, 2012 12:16 PM
Well, see my comment below at 1000AM. With TCA you get 5% when customer YOU introduce to this FREE membership uses a coupon ANYWHERE, and ADDITIONALLY 2% to YOU if you are the person who signs up the merchant for ALL TCA coupons used at the participating business......... FOR EVER !................. It's great.
Clarence E. Wrote: Apr 06, 2012 12:19 PM
It sounds kind of like a Pyramid Scheme to me.
WallyOzzy Wrote: Apr 07, 2012 2:11 AM
Yes, for 5 levels. 5% = 25% of actual sales price of coupon. So a $20.00 value Pizza, for $10.00 coupon = $.50 goes to the member who signed up the purchaser of the coupon WOW! wouldn't ANY PIZZA business gladly pay 50 cents for a GUARANTEED sale of a pizza. (plus whatever customer may purchase at regular price) No wasting mailings, door hangers and the like. Not a Ponzi sceme because nothing invested. It''s FREE !
Google wallyozzy in quotes
WallyOzzy Wrote: Apr 07, 2012 2:37 AM
Correction ! It’s 50 cents to me and 50 cents to my 4 up-line. Cost to merchant is $2.50. MANY have been sold as GROUPON is a testimony. Difference to TCA, is that this marketing expense is paid to TCA's members (YOU?) and not to a 7,000 (last I heard) sales force paid by Groupon. That is, in my opinion, why the Groupon business model won't work. In TCA the "sales force” are ALSO active interested and participating members. They have SELF INTERESTS, Therefore highly motivated and thus ALL 292,000 in TCA benefit
Wally. e-mail at wallyozzy@earthlink.net

Groupon ($GRPN) has been in the news again for accounting irregularity. It restated fourth quarter earnings. What was amazing is that it went public in the fourth quarter…..and it had a couple run ins on accounting before it went public.
 

GRPN data by YCharts

“Three strikes and you’re out.”, is the saying. The market is punishing the company.

Whether you agree with the business model of