Comments on: Notes on Groupon http://blogs.reuters.com/felix-salmon/2011/09/26/notes-on-groupon/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: coupondunia.in http://blogs.reuters.com/felix-salmon/2011/09/26/notes-on-groupon/comment-page-1/#comment-55990 Fri, 24 Oct 2014 13:27:10 +0000 http://blogs.reuters.com/felix-salmon/?p=10185#comment-55990 This can be particularly good matter as improved within the webpage. Get pleasure from referring to encompassing.

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By: traduceri daneza http://blogs.reuters.com/felix-salmon/2011/09/26/notes-on-groupon/comment-page-1/#comment-53736 Mon, 29 Sep 2014 14:05:25 +0000 http://blogs.reuters.com/felix-salmon/?p=10185#comment-53736 Great paintings! That is the type of info that are meant to be shared around the net. Disgrace on Google for not positioning this publish upper! Come on over and consult with my web site . Thank you =)

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By: Sheltonmathews http://blogs.reuters.com/felix-salmon/2011/09/26/notes-on-groupon/comment-page-1/#comment-31349 Fri, 30 Sep 2011 10:45:29 +0000 http://blogs.reuters.com/felix-salmon/?p=10185#comment-31349 Groupon is only site which brings the buyers together to purchase goods in bulk. Groupon restated that their revenues, net of the amounts related to merchant fees. As per the report mentioned in several sites, Groupon’s revenue has decreased 4 percent from june. . Groupon generated twice the amount of living social. Groupon revenue is declined due to formation of groupon clones. Groupon clones are much more like Groupon, so these sites start earning the most revenue. Hence there is a decrease in Groupon’s revenues.

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By: TFF http://blogs.reuters.com/felix-salmon/2011/09/26/notes-on-groupon/comment-page-1/#comment-31336 Thu, 29 Sep 2011 01:08:03 +0000 http://blogs.reuters.com/felix-salmon/?p=10185#comment-31336 “I think it is evident that the core idea of the business – group buying – is novel and simple, but also extremely powerful.”

Group buying *is* a powerful concept. Many products can be delivered more efficiently in quantity. But for Groupon, the “group buying” appears to be more of a gimmick than a key characteristic of their business. It seems to me that it would play similarly to merchants regardless of whether the deals had an upper limit, a lower limit, or no limit.

Group buying efficiencies are seen with products, not the high-margin services that Groupon prefers.

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By: Muffadal http://blogs.reuters.com/felix-salmon/2011/09/26/notes-on-groupon/comment-page-1/#comment-31332 Wed, 28 Sep 2011 19:38:55 +0000 http://blogs.reuters.com/felix-salmon/?p=10185#comment-31332 I think this article presents a good analysis of the pros and cons of groupon. There seems to be a lot of bad press out there and lots of discussion about how Groupon is a ponzi scheme or akin to a CDO.

I think it is evident that the core idea of the business – group buying – is novel and simple, but also extremely powerful. There is a massive market for group buying and the companies that come ahead in this industry will need to turn the business model on its head and try something new.

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By: crowdseats http://blogs.reuters.com/felix-salmon/2011/09/26/notes-on-groupon/comment-page-1/#comment-31330 Wed, 28 Sep 2011 18:05:46 +0000 http://blogs.reuters.com/felix-salmon/?p=10185#comment-31330 Revenue/Merchant and Revenue/Subscriber are falling because of deal fatigue. Consumers are getting multiple deal provider emails each day featuring un-targeted deals. That’s the biggest problem – if, day-in, day-out, you get emails from Groupon, Living Social, etc, etc with untargeted offers, you’ll begin to consider those emails as spam.

We’re huge believers of niche being the future of the Daily Deal Space – we built our business model around that by only focusing on sports ticket daily deals. This ensures that emails will always be targeted – thus increasing the likelihood of a purchase. Why do I get emails for manicures when I have no need/interest in buying one? That puts a bad taste in my mouth and makes me hesitant to open the next email or continue my email subscription.

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By: cbrophy http://blogs.reuters.com/felix-salmon/2011/09/26/notes-on-groupon/comment-page-1/#comment-31310 Tue, 27 Sep 2011 23:06:18 +0000 http://blogs.reuters.com/felix-salmon/?p=10185#comment-31310 At first I was just surprised at your kind words for this company, amid it seems every other journalist’s criticisms. But with everything that has come to light– in particular the analysis of these two disinterested accounting professors (http://blogs.smeal.psu.edu/grumpyoldacc ountants/archives/281#more-281)– I think your position is increasingly indefensible.

You start out touting its unprecedented revenue growth– “fastest growing company the world has ever seen”– and then temper your enthusiasm with “it’s possible to quibble over terminology”. Well no, it’s not a quibble, Groupon overstated its actual revenue by 154.82% in 2010 and 178.81% in 2009. Where does $280 million for their third year (2nd full) put them on the graph?

To arrrive at their “near $1 billion revenue”, Groupon selectively applied the letter of the law (from the Emerging Issues Task Force (EITF) 99-19) in arguing it was the primary obligor– just one of many criteria used to justify gross instead of net revenue recognition. But a full application of the guidance from the SEC would have failed to characterize them an an obigor and would have recommended net revenue recognition insead of gross. Upon Groupon’s S-1 filing, several bloggers made the comparison to Amazon, which recognizes net:

“If we are not primarily obligated, and do not have latitude in establishing prices, amounts earned are determined using a fixed percentage, a fixed payment schedule, or a combination of the two, we generally record the net amounts as commissions earned.”

Maybe you would have us believe that Groupon’s CFO– former Amazon finance VP in Asia (and accountant with Arthur Andersen)– truly believed reporting revenue in this way was the best representation of the company’s finances to the public. Others would bet it has more to do with the $9.5 million in stock-based compensation he received in 2010.

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By: patentguy http://blogs.reuters.com/felix-salmon/2011/09/26/notes-on-groupon/comment-page-1/#comment-31283 Tue, 27 Sep 2011 14:46:53 +0000 http://blogs.reuters.com/felix-salmon/?p=10185#comment-31283 don’t forget about patent risks. the telecom and wireless companies were patenting systems and methods for local advertising years before groupon came on the scene.

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By: mfw13 http://blogs.reuters.com/felix-salmon/2011/09/26/notes-on-groupon/comment-page-1/#comment-31279 Tue, 27 Sep 2011 05:56:29 +0000 http://blogs.reuters.com/felix-salmon/?p=10185#comment-31279 Groupon’s biggest problem is that its business model is not sustainable. It owns no valuable intellectual or physical property, just an easily copied idea. Nor does it possess any sort of barrier to entry that will keep competitors out.

Although it did have first mover advantage, because anyone can copy its business model/methods, this advantage is already disappearing and will soon be gone entirely.

Five years from now, Groupon will be an afterthought….

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By: Danny_Black http://blogs.reuters.com/felix-salmon/2011/09/26/notes-on-groupon/comment-page-1/#comment-31277 Tue, 27 Sep 2011 03:28:19 +0000 http://blogs.reuters.com/felix-salmon/?p=10185#comment-31277 Isn’t there a name for investments where later investors pay out the earlier ones? Pon-something

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