FACTS ABOUT GROUPON

Groupon requires the vendor to discount the prices posted on the vendors' website for the services by at least 50%, and then Groupon will charge the vendor almost 60% of the amount the customer paid for the service on Groupon's website.

Example: 

  • A lash salon charges $150.00 for a full set of lash extensions.
  • Groupon advertises the full set for $75.00. 
  • Customers pay Groupon $75.00. 
  • The vendor submits customers redemption # to Groupon
  • Groupon pays the lash salon $30.00 
  • If the lash salon pays a stylist (at most 50% commission on $30.00): the stylist is paid $15.00 for 2 hours of work. That is less than the minimum wage.


At rates like this, how could any salon or spa not backed by a big corporation afford to pay for professional quality products and maintain high sanitation and disinfection standards plus pay staff, rent, etc.?