Do you Groupon?

Did you see the headline this week that Google offered to buy Groupon for $6 Billion - yes $6 Billion. This for a company that started up in Chicago in 2008 and yet does not have national distribution covering the entire country. Wow is all I could say and especially after Groupon turned down the offer.

So what is the magic behind Groupon? I first starting using Groupon this spring when a friend alerted me to the service. I've bought about 10 Groupon offers and have truly enjoyed the experience. Basically I've been able to eat at some great restaurants for half price. Got $50 worth of clothes at Gap for the kids for $25. Same thing for some great bakery items and just recently some car washes - basically a buy one get four for free offer. These are terrific consumer offers and who doesn't like a deal.

I'm sold on this brand and have certainly noticed the copycats that are springing up all over the place from the local newspapers and broadcast outlets. Heck the more offers to get goods and services at a discounted rate is great for consumers.

But what about the companies putting out the offers? Is this a good deal or not? I'd love to get more information if the program is successful at driving repeat business. We know it drives trial but what about repeat which is necessary for a business to thrive and grow.

It will be interesting to see how Groupon evolves. Certainly they can expand geography to grow the business. But will they be able to be a long-term play? Certainly Google thinks they can be. And Groupon must be pretty confident given they turned down $6 Billion.

This will be a great case study to watch unfold. What do you think will happen to Groupon? Let's have a conversation.