It's not profitable for the customers (mostly small businesses). They take big losses for the events and don't acquire repeat business. The consumers who partake are only doing it for the deal.
Maybe for some businesses it's not profitable, but it could be fantastic for places like a restaurant.
Every time I buy a groupon for a restaurant it's one I haven't been to before. It's never enough to pay for more than 1 meal and I don't really ever go alone. I usually buy a drink, soft or alcoholic, they're high margin. If I like the food it's on my list of places that I'll go back to. If I don't like the food, they still made some profit.
I think the problem is that these daily deal companies scaled way too fast. Instead of getting profitable in one city and growing, they tried to go nationwide and hired gigantic sales teams. Then, to make quick money they started selling terrible products and people lost interest.
I don't think you're the norm. I've read several articles where small business owners say that most people only come for the deal, get nothing else, and don't come back. It's a similar mentality that couponers have.
