Coupons / Groupons - good or bad for business?

Coupons – good or bad?    Is a customer only buying a product or visiting a restaurant because they have a coupon?  Would they being doing the same without a coupon?    I have mixed feelings about Groupon and LivingSocial.   Both sites have some terrific deals on just about anything.  There are deals that I have seen for things I had never thought of  - but want to try because I have seen a coupon for it ( Hot air ballooning, art classes, cooking classes and more).   I would be interested to talk to businesses that use this type of marketing to see what the return business is after  a coupon has been used.   

This business “Tea Around the World” doesn’t have a place for coupons yet.   We tried our first few deals on both on FaceBook and emails and it didn’t go very well.

We are definitely all for doing promotions and special but due to the size &

scope of the business, it needs to be on a more manageable and controllable level.

If in a perfect world – we were adding coupons to the business marketing side; it would be discounts on the treats or having a formal afternoon tea event at ½ price.    Also I would be looking at other companies who also do formal teas (like the US Grant or Grand Del Mar) to see if they offer Group on or see if we can partner with them to offer discounts.

There are businesses that do really well with coupons or discounts and it increases business and presence for the company.

Walking further down the road on this journey of social media…..