1 definition by spineman
A business decides to offer too good a deal without the right limits or caps and goes broke due to a Groupon promotion.
Company offer $100 worth of merchandise for $30 and has to pay Groupon $15 of the $30 leaving them just $15 for a $100 worth of product. Now even if they were operating at a 60% mark-up the product still costs the company $40 and they only get $15. If they sold 1,000 Groupons , then they would be in the hole for $25,000, Grouponcide!
by spineman June 6, 2011