The problem with Groupon

We have been early adopters of Groupon – the group buying site that recently got a valuation of 1.2 billion. Jon especially loves Groupon and is constantly looking for good deals through it. But after our experience last night, I decided never to use it for a evening out again.

We called the restaurant for reservations (mentioning that we were using Groupon – as the coupon instructed). We were given an appointment pretty late in the evening (though we called early). Once we got there, we were told there was a further delay. I don’t know for sure, but I think restaurant staff don’t really like Groupon users and treat them like they are free-loaders.

Back to restaurant – The food was mediocre. The atmosphere not the sort we would have chosen otherwise. In short – the only reason for trying this restaurant was the coupon.

We did not even eat enough to use the whole coupon (which is very unusual for Sushi). We had paid $25 for a Groupon coupon worth $55. At the restaurant, we paid $15 tax and tip (so we spent $40 total). If we had not used Groupon, we would have paid about $55 (tax, tip included). So we saved $15.

For $15 lesser, we ate rather mediocre Sushi at a place we did not like.

My previous uses of Groupon have been different – we often use half off coupon for a place we love to eat anyway. The problem is that we have to buy more food than we need and eat leftovers later. While I love that restaurant, the food does not work well for leftovers.

I have never been a coupon clipper – I don’t buy things at the grocery store just because they are on sales, or go to restaurants because they are having a half off promotion. Instead, I prefer to consume only what I need – if its on sale, that’s great. So maybe you argue I am not the right sort of user for Groupon.

However, I am price sensitive – if I am buying something online, I will always search for the best price. This is why I love shopping and price comparison engines – they let me find a great price for an item I already want. That is crucial – I find an item I want, then search for best price.

Groupon inverts that – it invites you to buy things you don’t want and gives you a discount on them. You find the discount at the same time as hundreds of people, so the restaurant (or other establishment) is overwhelmed and staff often treat the coupon holders as free-loaders. Does not lead to great experiences.

I will still try Groupon, but only for things I already want. And I will use it with groups, so we actually benefit from the volume you have to purchase.