The whole concept of Groupon to my knowledge is that companies agree to sell its products or services at a discounted rate as long as they meet a specific sales quota. So in many ways, they are using funds that they would have normally used for marketing to get customers and instead are simply slashing its prices to build buzz.
I have often heard too that many of its products and services have inflated prices to make them sound better. Just like going to a retail store that means you still need to do your homework regardless of how much one claims you are saving. I did find these travel offers to be kind of funny though. As you can see, the original price is $0. From $0 a trip to China has a sale price of $999 and a trip to Jamaica is $799.
While this is obviously an error, examples like these sure make me wonder if that wasn’t simply the regular retail price where they simply forgot to come up with an original retail price that sounds good.