Groupon Deal Costs Photographer a Year's Free Work

There was a big thread on it the other day

Many hidden costs with groupon, and they are terrible to deal with. They also have a clause that says you can't offer a web offer for 24 months as part of their exclusivity clause
 
Who determines what price to sell that package at?

Is there a clause in Groupon that says you need to sell at 'x' percentage below list/rrp? How else could he come to £29?
 
To be honest the tale here is just someone who priced the deal stupidly. If a car dealer offered a car at less than cost then the same thing would happen.
 
There were some people moaning on watchdog about them. Low priced offers that were over subscribed (Like durrrrrr) but it can work well if you have the sense to limit how many you sell. The guy could have easily limited it to say 10 of these offers. Then done another that was more expensive and limited it to say 30. It's all how you use it. Then those 40 get vouchers to give to their friends for a smaller discount off standard prices and everyone is a winner.

Groupon are quite clear that you can limit the number you sell. If you can't then only a fool would sell something valued at £200 for £29 knowing full well groupon take half and not limit the number to something small.
 
Its the photographers fault entirely, showing that he hasnt got the best grasp of business.

Having said that, some of the photography deals that you see on Group-on are madness, and rely heavily on the prospect of upselling to make anything for the tog. Now if you are a good salesman that may work out fine in these lean times, if not you are going to be at best a busy fool at worst out of business. I think many of the deals on groupon are a sign of desperate times, better to have a full appointment diary than an empty one syndrome.
 
I think that the likely equation here included theoretical sales of additional prints, but that doesn't always work out. I'd be interested to see from some of those who work in this manner what sort of percentage of conversion they have from 'one free print' to purchasing multiples and discs etc.
 
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