Angie's List (my company) has created a similar group coupon system (The Big Deal) as Groupon, but targeted to a more niche market. We actually allow companies to set a hard limit on the number of coupons that can get sold. This allows businesses to offer really great deals that they expect may do negative revenue just to bring in new customers, but control the loss with the limit.
I'm surprised Groupon doesn't do this. Or do they and this business just didn't set a limit?
They do not set a limit, or at least didn't in this case.
"When I talked to Lucinda today, she asked if there was a cap on how many were sold to help protect the business from too much loss, and the simple answer is, no. When you sign up for Groupon, you are agreeing to sell as many as get sold."
Just went there to check out your website. I must say, it is very annoying that after clicking around for a few minutes I couldn't find the cost. That is, without giving you an email address.
I'm surprised Groupon doesn't do this. Or do they and this business just didn't set a limit?