There was a big splash in the automotive news world a few days ago when we saw the first auto dealership Groupon offer. Twitter and blogs were all abuzz with industry experts, vendors, and dealers debating the deal, and offering opinions about whether it would work or not. Now the deal has expired, and the minimum number of Groupon vouchers weren’t purchased, so the deal is null and void.
Of course, everyone is now jumping on the “here’s why it didn’t work” bandwagon… There’s a great post by Arnold Tijerina over at dealer-magazine.com called “Why the first car dealership Groupon failed” – give it a read, he’s got a few great points…
To summarize, he says the deal didn’t have value for the customer because customers EXPECT to negotiate with the dealer and bring the price down by at least $500 – so why would a Groupon be necessary? Also, the dealer probably didn’t handle the Groupon correctly – as potential buyers were leaving comments debating the worth of the deal, the GM left a few comments of his own to try to prove to people how valuable the deal was: continue reading..