American consumers will be getting bargain buys this summer and fall, with Burlington and TJ Maxx taking advantage of cheap closeout deals. They benefited from retailers slashing prices on thousands of products due to their excess inventory.
hunters, discount shoppers are going to, you know, be the most prone to take up the offer. you have to guard against that in this business. i wonder, if you make money on the people who never redeem them? i have a groupon i bought for a restaurant down the street. i didn t know they expired. i just learned this. there s definitely some breakage in the model. i think it s offset largely by you know, the deep discounts. the reality is you have to watch for the adverse selection. you are going to get some of that. part of it is figuring out the offer you are going to make. the restaurant guy seemed smart about wanting to fill his chairs. there s a lot of overload. there s groupon, living social, everybody is doing it. as a consumer, you are ignoring it. whatever. i don t have time to look at this. you don t want to waste your
they may not walk in again. i think you have to look at what you sell to see is it a return type of product, or service anyway, that people are going to where you re introducing yourself to them and they re going, wow, this was great, i m going to come back on my own. that s actually quite a good point. there are some businesses that are just not cut out for groupon. if you re in a, you know, one-time transactional business. for instance, what we saw on video, you know, laser hair removal treatment. how often are people going to do that? you know, you come, you get the hair removed, you re done. what are you expecting? i think it s a many-step process. i m not sure. for sure. but perhaps somebody said 50% off i always wanted to do my arms, and they re done. unless they have a way to really drive the rest of it, it s not really going to work. i think you also raise another good point, there is a bit of an adverse selection problem here which is, and this has always been the case