Jessie Burke, owner of Posies Cafe in Portland, Oregon, wants people to know what it's like to be a small business working with Groupon: apparently pretty terrible. Not only were many of the customers the deal attracted rude, neglecting to tip the staff or insisting on bending the rules of Posies' offer, the income made wasn't enough to cover her costs: Posies ended up losing enough money that Burke had to dip into her personal savings for $8,000 to cover payroll.
Posies offered a $6 for $13 worth of product deal, and Burke ended up seeing $3 per coupon sold. This is, apparently, more than most business owners: according to her sales rep, Groupon usually keeps 100% of the proceeds from offers that cost less than $10
While this may not be every business' experience with the coupon website, it certainly gives us pause. Business owners, how does this compare to your experiences? Civilians, will knowing that Groupon might be a bum deal for local, small businesses change the way you interact with them?
· Groupon in Retrospect [Posies Cafe]
· All Groupon Coverage on Eater [-E-]
Posies Cafe, Portland. [Photo: Posies Cafe / Facebook]