HOUSTON (FOX 26) -
The daily-deal site Groupon has lost three quarters of its value since going public last fall as investors cash in on their stock.
It's supposed to be an advertising vehicle for businesses to offer customers a great deal in the hope that they'll come back to pay full price.
While a lot of consumers simply chase the coupons, businesses like Bungalow Coffee Café, in the Montrose neighborhood, see their Groupon deals as a valuable way reach customers who sample their service.
"You're going to pay for advertising, one way or the other," says Bungalow owner Denise Skorka. "If it's not in the front side by writing out a check to the retail advertiser that's going to market for you, then you're going to pay on the end side by giving away some of your profit or your merchandise or service away."
Businesses typically lose 75 percent of their retail costs to a Groupon deal.
Observers say the daily-deal site is losing money because businesses complain it's not much of a deal for "them".
