GroupOn, Daily Deals, and evil restaurants

Recently I took on a writing gig with ZDNet, focusing on small business and technology.  I’m pretty excited about this as I love all things tech and since leaving Microsoft this gives me great reason to stay abreast of all technology news.  (I would have done that anyway but now I can justify the bazillion hours of surfing the net by saying it’s research).

My latest entry is about the 4 waves that have occurred with restaurants utilizing daily deal (GroupOn) sites and how the current wave of restaurants are exploiting the customers.  Beware buying any daily deal for a restaurant!

GroupOn can mean bad reviews – how the current crop of restaurants lie, cheat, and steal from their customers

Have a read!

Is GroupOn poised for collapse?

Interesting guest post by Rocky Agrawal for TechCrunch with his thoughts on why GroupOn is poised for collapse.

“Imagine you’re a small business owner. You have to choose between two propositions:

  1. You can pay $62,500 for marketing. You’ll get a whole lot of customers coming through your door. No guarantees if they will ever come back, but they’ll come once.
  2. I’ll pay you $21,000. You get $7,000 in about 5 days, another $7,000 in 30 days and the remainder in 60 days. In exchange, you’ll give my customers cheap products for the next year.

I’ve been working on local for a long time and I know it’s hard to get small businesses to spend money on advertising. Really hard. Even getting $200 a month ($2,400 a year) is a high hurdle to meet.” – read the rest of his commentary

Hopefully (and if anyone cares, haha) when I get some more time I’ll write my thoughts and experience with GroupOn and the various daily deal sites.  Singapore is saturated with them – over 20+ at my last count.  There has got to be a shakeout happening soon… how many discounted spa deals do we really need flooding our inboxes?