How Much Does An App Like Groupon Cost


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Groupon Deals - who doesn’t know them nowadays and hasn’t been confronted with messages like “Restaurant discounts of up to 70% in your city”? They are advertised almost everywhere on the Internet: on AdWords ads, in guest articles, on Facebook, by email. Almost everyone knows someone who has already bought a Groupon deal; be it a visit to a restaurant, a weekend in a hotel or one of the many Groupon deals.

However, with the number of Groupon deals concluded, the number of complaints and problem reports from restaurateurs is increasing. It is now not difficult to find a restaurant on the Internet for which setting a Groupon deal has only brought problems and problems. It is even easier, however, to find reports from disappointed Groupon buyers who bought a voucher for a restaurant, were completely disappointed and are now venting their anger on the Internet.

However, there are also other reports: restaurateurs are looking forward to finally getting their restaurant full. Others can win many new customers shortly after the restaurant is founded and others use Groupon Deals to fill their restaurant for special promotions at short notice and to generally increase catering sales.

Groupon Deals - What Is Groupon And How Does It Work?

The name “Groupon” is made up of 2 words:

1. Group
2. Coupon

As the name suggests, Groupon's business model is based on groups buying vouchers for products or services.

Groupon can be illuminated from 2 sides: From the customer side (voucher buyer) and from the company side (voucher provider).

Groupon From The Customer's Point Of View (Voucher Buyers):

To gain access to Groupon specials, individuals must provide their email address, place of residence and consent to receive Groupon emails. If you have done this, you will receive one or more emails every day with information on actions at Groupon.

A product or service is then advertised in the emails, as well as the conditions under which they are available. Interested persons then click on the link in the email and are forwarded to the respective Groupon Deals, where the offer is described in more detail and embellished with pictures and graphic elements. In addition, on this page you have the opportunity to tell friends about the offer. It can happen that some offers spread and the sales figures even go into the 5-digit range.

Since the offers expire in a short time, the interested person has to make a quick decision. This short decision-making period often results in spontaneous purchases and many do not consider whether they need this service or this product or whether they really like it. The huge discounts (at least 50%) also help people to act quickly without thinking too much.

If you have clicked on “buy now” at Groupon, you will receive a voucher for the service or the product, which you can then redeem at the seller.

However, payment is first made to Groupon, which has a contract with the seller of the products or services.

Groupon From A Seller's Point Of View (Voucher Provider)

To offer a deal with Groupon, the company must conclude a contract with Groupon in which the conditions for the promotion are specified. The companies are often contacted by sales representatives or register with Groupon. The day or the period on which the action is to take place is agreed in the contract. In addition, the offer that the company wants to offer is discussed. Occasionally, it is reported that companies are almost being pushed to offer the largest possible discount, as Groupon sells more promotions and thus earns more – but of course the company also gets more customers.

That is why the company must also ensure that it can make the offer and that the Groupon voucher buyers are not left empty.

Hyperlink InfoSystem can assist you with an app similar to Groupon. The cost of such app is around $7000 depending on its functionalities.

Possible Benefits

Customer Acquisition:

With the help of Groupon Deals you get more people into your own restaurant. The restaurateurs can see this advantage after only a short time.

Payment Only On Completion:

The business model also proves to be more advantageous compared to others. Marketing tactics that you only pay for this method if it actually works. With other advertisements, for example, the restaurateurs have to pay at an earlier point in time without having the certainty that these advertisements will actually bring many guests to the restaurant. At Groupon, you only pay for deals that close.

Profit In The Long-term:

Many restaurants do not actually make a profit when Groupon customers visit them for the first time. This means that they add the Groupon customers to their customer list and motivate them to visit again by contacting them frequently so that they can at least earn the money afterwards. It is not for nothing that keeping a guest list is so extremely important for restaurants.

Increased Acquaintance:

Groupon reaches a large group of people with its large email address list and various advertising media. Thus, as a restaurateur with a Groupon deal, you can also access this huge customer database. This makes it very easy to quickly increase the awareness of your own restaurant in just a short time.

Deals Without Groupon:

On the Groupon Deal page that describes a deal, you can also find the web address of the respective company. As a result, some customers try to make an offer directly with the respective restaurant, i.e., without Groupon. Such offers are of course more beneficial for companies as they do not have to pay any fees to Groupon. This even doubles the profit margin for restaurateurs. As a restaurant owner with this business model, you should definitely keep this option in mind when deciding on Groupon Deals and being contacted directly by interested parties.

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