That's all well and good IF price is the ONLY factor.
Which, usually, it isn't.
Suppose Dave62 runs the best restaurant in the area with the best food ever, at the most reasonable prices.
That means nothing if people don't know about you.
You can halve your prices, won't get you any more customers if nobody knows about you.
So you advertise via a Groupin offer which naturally sells out.
Suddenly your restaurant is full for a month. Yeah, you make less than full price per table, but that is way more than you made on that same yet empty table the month before.
Wil most Grouponites return?
BUT for that month your place was busy, packed. And news like that travels it must have been packed for a reason. If everyone else is going, perhaps "I" ought to go.
Which I do.
And discover a bloody good restaurant which I frequent and introduce friends to.
Now you have more customers, regulars, than you did before.
Is that not worthwhile?
And as for paying lots to Groupin and people not paying £40 for a meal they got for £20 last time?
Piss easy one!
Your Groupon meal is not a normal menu option, it's a limited Groupon special. At a special price.
They notice when glancing at the menu that there are some bargains.
And the food was great, so maybe next time they are in the area...
Sure, not every Grouponite becomes a customer. Nobody is claiming they do.
However, when run properly by someone who knows what they are doing, a Groupon offe can be a very effective marketing tool.
When run properly. Therein lies the rub...