A-yup, it's called "group coupons", the anti-christ of all businesses.
Here's the way it works:
A third party has it's "subscribers" or clients who are attracted to this 3rd party, usually via smartphone, because this 3rd party, a Group Coupon Co. ( gc for short) offers tremendous discounts, usually in the range of 40-50%.
Now of course the gc isn't giving this 50% off out of their own pocket, they need a sucker for this.
Enter the business/merchant..
The business/merchant is conned into believing that it should give the gc the right to give away 50% discount of their product, PLUS, an additional 25% of the initial product/service cost to the gc. The clients/subscriers then pay the the gc the remaining 50 % via paypal or visa, and the gc informs the business/merchant of to the customer, and can pay the merchant as late as 3 mths after the product/service was consumed. The business/merchant has to honour this purchase, which can be as late as 12 mths after the initial purchase date.
The gc's claim that it is "advertising", "marketing", and "brings customers to your door". Yes it does bring customers to your door, but at a 75% loss, it is impossible to make any money, matter of fact it's impossible not to loose any money. Besides, the customers are only there for the discount, won't buy anything else, are reluctant to tip or pay obligatory taxes, and take up a lot of your time with reservations and cancellations. Return customers (that come back and pay full price) of gc's are typically less than 5%
Sh*tty way of marketing. If you recieve flowers, who do you remember? The name on the card? Or the florist who sourced the flowers, put togther the bouquet, and delivered it?
See, the gc's need the small businesses a lot more than the small businesses need them, as they have no way of offering thier own product/service.
It might work for retailers selling off last year's clothing, or selling milk with 2 days before the expiry date, but restaurants sell a made-to order product and a made-to order service. 2 +2 does not = 5, and it does not make financial or practical sense to use a gc to promote your business.
Basically, it's a con-game
Anyone who argues that 2+2 =5 will never win, and will look very stupid in the process.
Anyone want to argue that gc's are good for business?
