Friday, March 04, 2011

Are You Really Saving Money With Groupon?

From My-Fox Tampa Bay (FL).

"Millions of you get them every day. Inside deals offering you a chance to bag a better buy than the next guy. Digital deals delivered direct to your desktop.

Coupon sites like Groupon, Buy with me, and Living social, court consumers with significant savings you pay for.

Tampa's museum of science and industry offered a discount in November. More than 2,700 people paid $8 for a $17 dollar ticket.

"It was just a great opportunity for people who've never been to Mosi to come and check it out at a very affordable price," stated Pablo Aviles.

Our FOX station in Dallas found not everyone's sold.

David Snell said Groupon approached his flight school business last year. Here's the deal Groupon proposed: Snell would slash the price of his scenic flight tours. A 50 percent coupon. Groupon would e-mail the offer to its 380,000 subscribers around Dallas.

Snell and Groupon would split the money fifty fifty.

“There's no way to make it work at least not for us,” said Snell.

One of Snell’s competitors, "supreme aviation" showed up on Groupon and two other savings sites. What was the deal? 50 percent off a 30 minute flight instead of paying $199, shoppers would pay just $99.

But look what they found: When someone books a $99 1/2 hour flight here is that paying full price? Sure.

Yet hundreds of bargain hunters grabbed $99 dollar flights listed as 50 percent off.

“So when was it $199 dollars,” asked Roy Cook, “probably about 5 years ago.”

Roy Cook is a sales director. He stated that company headquarters in India provided the prices.

“So how can you call that a 50% discount,” stated Cook. That's their 50% discount. We don't give a 50% discount.

This isn't the first instance of pricing problems. Just before Valentines Day, customers complained FTD flowers bought with a Groupon discount were more expensive than without.

As for the flight school in Texas, Groupon is offering a refund to those customers. Even if they've already redeemed the offer."


It's not just Groupon--it's ALL coupon-type discount services. Even regular coupons.

1 comments:

Andy said...

I like groupon and have subscribed to it. But living social is also starting to offer some great deals. But as competiton grows I wonder how many sites like this will spring up and consumers should beware of the detals, as you alluded to in this article