[qasar]

im a chicago entrepreneur and had a crowd funding startup. i sat on a panel with andrew last year before groupon got massive and know as much as anyone about the inner workings of groupon (pun intended).

i write this to give some context to the comment below.

groupon (i dont think maliciously) uses the fact that they are sophisticated and the small business owner isn't to their advantage.

you might think "so what? all is fair"

well, the small business community doesn't live in a vaccum. they talk to each other and talk about groupon (especially here in chicago).yes, they don't know how to create promotions (one of the real values groupon sales people provide) BUT what they do talk about are these horror stories.

so whats the moral here? people aren't idiots and if groupon wants to make sure their two sided platform survives, it can't abuse one side for the benefit of the other.

[noodle]

so, then, would you think that there is a place for a business similar to groupon but focuses more on trying to cut deals that encourages the growth of repeat business and/or good customers?

[qasar]

absolutely. the whole digital promotion space is still ripe.

i used to work for the the 3rd largest broadline retailer in the US(SHLD) and we were constantly struggling with this.

Think about it, right now if you're Target, how do you push promotions to those who dont already shop at Target? TV is primarily branding, search is primarily for...well specific product search. Nothing out there for true, replacing the old sunday circular, promotions.

[qasar]

hint hint: there's a startup in there somewhere :)