I’ve decided that I’d like to spend more time with my family. Just kidding – I was fired today.

I love this honest quote from Andrew Mason the founder of Groupon who I have followed.
As an investor not surprising after further losses.

He was inspirational in spotting and setting up the opportunity. The Groupon model is a great way of getting new customers into a business. Though it is expensive, typically the offers are 50% off and then you have to pay their costs on top. So for many businesses this is a loss leader.

It works for businesses that have high fixed costs such as hotels which have major occupancy problems.

The other useful route is to get new customers used to yuor offering. Restaurants have used this a  lot. As a good restaurant can get 6 visits a year from customers who like the standard offering.

Back to Andrew Mason, it appears to be a case that he was creative and great in setting up the business, but did not have the experience to manage it at its maturity. Currently operating in 50 countries probebly too big for someone who had never run a business before.

So having had a year of poor results and the share value fall by 77% no surprise for …..

“In a note to employees he said: “After four and a half intense and wonderful years as CEO of Groupon, I’ve decided that I’d like to spend more time with my family. Just kidding – I was fired today. If you’re wondering why… you haven’t been paying attention.”

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