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Groupon and Living Social definitely seem to be the new wave in marketing. I've tried both Groupon and Living Social, and while I like the companies in terms of customer service and helping to generate new customers, I don't like some things about them. Here's my pro's and con's list--you make your own decision.
Pro's-no upfront costs marketing campaign
generates a lot of customers
easy to use and friendly customer service
get new people in the door
Con's-the customers that it can attract are not always high quality
you have to greatly reduce your service price and the customers want that price on future visits
some of the customers are more fickle than full priced customers
many of the customers tip on the paid price and not the price of service
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