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On Thursday 9th February 2012, Groupon reported a huge fourth quarter loss of $42million. Whilst it blamed the loss on its rapid expansion into new markets, Denis Kondopoulos from believes that the answer lies a little closer to its relationship with the businesses they work with.

“Sites such as Groupon present great value to the consumer, but they can be unfair to businesses, as they charge businesses a very high commission per sale. This, combined with asking companies to reduce the price of their product /service by up to 90% can be crippling, and I think businesses are now fighting back.”

Within the last 3 years, Groupon has grown rapidly, and so has the popularity of voucher sites. Many of them work by offering deals at a reduced price of between 60 – 90% off, and then charging a commission from the sale price. For some businesses such as restaurants, this may work well as customers are more likely to buy extra products....

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