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Archive for December, 2010

Groupon

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Groupon has turned down Google’s $6 billion offer.

For restaurants, I see some benefits for Groupon far beyond exposure, sampling their menus or offering discounts.

Looking at a restaurants “off-season”, there are certain nights that are often more profitable than other nights.

For example, on Thursday, Friday and Saturday, a restaurant may have 2 full sittings. On a Monday, they may barely be able to fill 1 full sitting. This Monday night, on average, can be seen as an off season for the restaurant. Instead of closing the restaurant on that given night, a restaurant can offer a coupon on Groupon that will allow them to cover some fixed costs of being open.

For any restaurant to be open, an X amount of employees (chefs, waitresses, bartenders) must be on sight regardless of the amount of customers. Along with the necessary food supplies and rent/ payments with the property. This being said, a restaurant can obviously scale back on their employees and goods, but they cannot scale down to the point where it may be too risky. They still need a standard amount of servers and foods for any night. Offering a coupon that allows them to cover these costs (maybe 20% off instead of 50% off) will allow for some revenue to be brought in during an off-season night while still open.

In this case, I feel that “filling seats” will still bring in revenue during a dead night and help cover some fixed costs as long as they calculate the amount discounted accordingly.

Written by matthewho2

December 5th, 2010 at 12:19 am

Posted in Uncategorized

An Investment of a Lifetime (Literally)

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Michael Vick was charged with torturing and killing dogs in his Virginia home and was sentenced to spend 23 months in jail. The Philadelphia Eagles made an investment in Michael Vick and provided a second chance for one of the greatest athletes to ever play in the NFL. A one year deal worth $1.6 million and a second year option worth $5.2 million dollars was seen as risky by most general managers and owners of the league. However, this investment has proven to be very successful for the Eagles Organization. Vick is a strong MVP candidate and has been playing at a All-Pro level. This is a remarkable come back as the most football he played before during his jail sentence was in the prison football league. His performance on and off the field has to led to praise by many NFL analysts. The Eagle’s investment has resulted in a highly popular and productive player; resulting in a strong record and high attendance. Michael Vick is now the face of the Philadelphia Eagles franchise and has taken his second chance to grow into the man that is worthy of a role model.
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Written by matthewho2

December 1st, 2010 at 10:35 pm

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Yeezy.

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Rosewood Movement

Kanye West has always been known for being unique- innovative, “different”, trend setter. His latest innovation has really caught my attention. Being claimed as one of the “Best Tweeter of All Time”, Kanye West has used social media to spread his brand. He has also taken on a record label named G.O.O.D. Music (Getting out our dreams). Part of his G.O.O.D. Music initiative, Kanye West has also taken upon his G.O.O.D. Friday’s where he releases a new song for free to download every Friday. He may be not making any profits from these free downloads that is provided through his website, but the release of his new album, My Beautiful Dark Twisted Fantasy, has already surpassed 500,000 sales in the first week. At a price of $1.29 a song, or $14.99 on itunes, Kanye West’s 5th album has received $7,500,000 dollars in revenue.

By exposing samples of songs on his new album, Kanye West was able to receive feedback from his fans, and create enormous hype around his work. Receiving 5/5 stars from the Rolling Stone, high reviews from the New York Times, and many other fantastic reviews. This strategy and marketing has resulted in major financial benefits, as well as a highly popular album.
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Written by matthewho2

December 1st, 2010 at 9:53 pm

Posted in Uncategorized

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