http://online.wsj.com/article/SB10001424053111904537404576554812230222934.html
I think delaying the IPO was a wise decision. Look I understand everyone is trying to make a buck. I get it. However, let us face facts. Groupon is facing legitimate scrutiny and valid questions about its business model. Investors have shown wisdom rather than greed.
What should Groupon do now? The company should consider pulling back from overseas deals and focus on one continent until it stabilizes the company.
Going to China or any other country is not going to stop competitors from launching their own sites. The mere fact Groupon was heading to China to open up shop with a business model that has low barriers to entry is a sign it does not understand China.
By the way, I have heard that local charities and affinity groups are now making deals with national and regional store outlets where the charity/affinity group is able to get its members to frequent a particular retail business. The business gives the members of the charity and affinity group a product discount and promises to give a dollar to the charity or affinity group. I hear the model works great. You want customers to be sticky customers to Groupon? I do not think any business or consumer will be sticky to Groupon. However, consumers have no trouble pushing business to a retailer that is willing to help their favorite charity or affinity group.
Groupon should think about serving charities.
Myy friendly advice to Groupon is listen to the businesses you are cutting deals with. These small businesses hate having to pay you so much. Sounds to me as if these businesses are telling you to cut your prices. Think of it this way. You are trying to get retailers to provide huge discounts which they have to pay you for, and yet the cost of doing business for the retailer is still the same. Groupon makes the retailer pay it so much that there is no profit left for the retailer. SO CUT YOUR PRICES because if you don’t a company like LivingSocial will and so will the local PENNY SAVER.
Looks like daily deal websites are losing their luster. Do not get me wrong, I think it is a great business. It is a low margin business but it is definitely a cashflow business for a small business owner.
"On Friday, Groupon said it would change what it books as revenue after discussions with the Securities and Exchange Commission. Groupon seems to have bigger problems ...
Yep, It just gets worse for these guys. Booking revenue using a brand new and creative (I say creative in a sarcastic way) accounting term was just plain stupid.
Group filed an updated version of its S-1 document with the Securities and Exchange Commission on Friday, as part of its preparation for a planned initial public offering of its stock. Seems they plan to move forward with an IPO.
DUMB unless they have reduced their valuation. If the valuation is reduced to something reasonable, then an IPO is possible.
