Why I Said No To Groupon
A few weeks ago, a representative from Groupon called me about offering a coupon through their site for Angel Cakes.
We talked for a while and she explained it all to me. I recognize that she is essentially a salesperson and her job is to make it sound like a good deal. She succeeded. You can read all about it on Groupon’s site for selling their service to businesses, Groupon Works.
Despite the sales pitch, I was skeptical. I started talking to a bunch of people about their experiences and thoughts about it and eventually decided not to do it.
Why I said No
Let me be a bit conceptual here for a moment.
Like most small business owners, I consider what I do a craft. Each cupcake order I make is custom made in a small batch, usually by me with the occasional help of an assistant. What I charge for my work is that (sometime elusive) sweet spot between what it actually costs me to produce the order and what people think it’s OK to pay for cupcakes (aka “what the market will bear”). There’s not really a lot of wiggle room there.
Capitalism is really good at instilling in us the desire to pay as little for things as possible, despite what the things cost to produce. This doesn’t make sense. When we look at the “slow food” and artisan food movements, where things like organic vegetables and fancy cheese and nice bread cost a lot, the producers say it’s because that’s what it actually costs to make the food. While I’m sure we can all think of fancy food and artisan things that are over-priced, for the most part, while we live in a system where we pay for food (which is kind of absurd, but that’s another story), I think that charging what it actually costs to make something is right.
Offering a coupon (Groupon says it needs to be at least 50% off) encourages that kind of behavior – of thinking not of what something is worth, but a more self-focused “what kind of deal can I get this for” attitude that I don’t want to encourage. At all. It’s not the way to value things that are produced ethically, by people who care about what they are making and their customers.
Not offering a coupon feels like I’m saying “this is what my product is worth.” Good. Let’s go with that.
Isn’t it worth it for the marketing / getting my name out there?
As someone who works on publicity and marketing, I think about how to get the word out about projects all the time. Unlike other people, I think spending money on marketing and promo efforts is important and can be effective when done right.
When people say “I lost a lot of money using Groupon,” Part of me thinks of that dollar figure not as lost money but as the cost of a marketing effort. Then the discussion is, is that dollar amount something I am willing to pay as an investment in marketing? and did I gain customers as a result? For most people, the answer is no.
For example, when I look at my Groupon/coupon buying behavior and that of my friends, which I can guess is not that different from most of the Groupon-buying public, I pretty much only buy coupons for places I already go or have no intention of going to again after I’ve spent the coupon.
Most people who buy online coupons are coupon shoppers. If they want more cupcakes, they’re not going to buy from me, they’re going to wait for the coupon for the next cupcake place (because we all know that cupcake places are everywhere right now).
Now that I’ve had the opportunity to think about this in an in-depth way, I’m not doing that any more. It basically financially penalizes the small businesses and restaurants that I am patronizing and want to support. They’re not gaining me as a customer since I already go there (or don’t intend to go again), they’re just losing money on the transaction. If I don’t want people to do that to me, why am I going to do that to others?
One of the caveats I can imagine is that if I were offering, say, a yoga class where my costs stayed the same even if the number of participants increased, then it might make sense. But, obviously, cupcakes are different than yoga. And if I offered a class, I would probably just offer an introductory package (like half off your first month or something), bypass Groupon, and spend my time and money on social media.
Talking about Occupy Wall Street
I’ve been absolutely thrilled with the amount of talking that has been going on about the Occupy Wall Street actions. When is the last time that so many people were talking so much about class and capitalism?
So many people are saying so many smart and interesting things, I wanted to share some of my favorites – and I hope you will too. I don’t agree with everything everyone has said here but I’ve refrained from editorializing, and although I’ve highlighted some of my favorite quotes here, most of the pieces are really just excellent through and through. As I was reading over them to pick quotes, I just kept thinking, “Fucking brilliant!” It’s been a long time since people have been so inspired.
- Crimthinc: “Dear Occupiers: A Letter from Anarchists”: “The problem isn’t just a few “bad apples.” The crisis is not the result of the selfishness of a few investment bankers; it is the inevitable consequence of an economic system that rewards cutthroat competition at every level of society. Capitalism is not a static way of life but a dynamic process that consumes everything, transforming the world into profit and wreckage. Now that everything has been fed into the fire, the system is collapsing, leaving even its former beneficiaries out in the cold. The answer is not to revert to some earlier stage of capitalism—to go back to the gold standard, for example; not only is that impossible, those earlier stages didn’t benefit the “99%” either. To get out of this mess, we’ll have to rediscover other ways of relating to each other and the world around us.” And then: “Police can’t be trusted. They may be “ordinary workers,” but their job is to protect the interests of the ruling class.”
- Isabell Moore, “Why I Support the 99%: An Open Letter to My Family”: “I believe this financial crisis is not our faults. But I do I believe actual people, banks and corporations, the 1%, made it happen because of their obsession with a “thing-oriented society,” as said by Dr. King. They have gotten richer during this whole thing while most of the rest of us have gotten poorer. This is the way capitalism works and I don’t like it one bit. We will all benefit from a shift to a “person-oriented society.”
- Malcolm Harris, Jacobin, “Occupied Wall Street: Some Tactical Thoughts”: “This is a marathon, not a sprint or a hamster wheel. “
- The New York Times Op Ed from Sunday 10/9, “Protesters Against Wall Street“: ” It is not the job of the protesters to draft legislation. That’s the job of the nation’s leaders, and if they had been doing it all along there might not be a need for these marches and rallies. Because they have not, the public airing of grievances is a legitimate and important end in itself. It is also the first line of defense against a return to the Wall Street ways that plunged the nation into an economic crisis from which it has yet to emerge. “
- Manissa McCleave Maharawal, guest post on Racialicious, “SO REAL IT HURTS: Notes on Occupy Wall Street“: “For some people this is the first time they have thought about how the world needs to be recreated. But some of us have been thinking about this for a while now. Does this mean that those of us who have been thinking about it for a while now should discredit this movement? No. It just means that there is a lot of learning going on down there and that there is a lot of teaching to be done.” Read the rest of this entry »
