[Retric]

I suspect the real problem was the size of their discounts. Selling a 40$ bottle of wine wine for 20$ attracts far more people that buy 20$ wine than people who buy 40$ wine. So unless you can afford to keep selling at 20$ the odds of repeat bushiness is low.

Really when it comes to coupons there are three options that actually work. You can always have a sale, you can make it a pain to use, or you can limit yourself to 10 to 15% off.

[pyoung]

That would have definitely been the much more sustainable approach. Although I have a feeling that offering discounts of 10-15% would not have resulted in the hysteria that they originally generated and thus would have limited traction. It is one of the many ironies of their story.