Jessie Burke, owner of N. Denver's Posies Cafe, wants people to know what it's like to be a small business working with Groupon — apparently pretty terrible.
In March, Posies offered a $6 for $13 worth of product deal, selling more than 1,000 coupons. Burke ended up seeing $3 per coupon sold. This is, apparently, more than most business owners: According to Burke's sales rep, Groupon usually keeps 100% of the proceeds from offers that cost less than $10.
Posies ended up losing enough money over the course of three months that Burke had to dip into her personal savings for $8,000 to cover rent and payroll. Ouch. "Please know that I don’t think Groupon is the enemy here," Burke continues. "I readily admit that for certain types of businesses, it is a great opportunity. Just not mine."
Thanks to our friends at Eater National for the assist: Click over to the mothership to get in on the Groupon discussion. Will knowing that Groupon might be a bum deal for local, small businesses change the way you interact with them?
· Posies Cafe [Official site]
· Cafe Owner Speaks Out Against Groupon [-E-]