From the Jesse Burke’s experience of using Groupon for her business Posies Cafe.

At the same time we met many, many terrible Groupon customers… customers that didn’t follow the Groupon rules and used multiple Groupons for single transactions, and argued with you about it with disgusted looks on their faces, or who tipped based on what they owed (10% of $0 is zero dollars, so tossing in a dime was them being generous).

In short, people are cheap.

If you are considering using Groupon for your business, Jessie summed it up best:

After all of this, I find myself not even willing to buy Groupons because I know how it could hurt a business (side note: service industry businesses do quite well with features like this because it is just the cost of time – you are not paying for a product for resale. Resale, in my opinion, get hit the hardest).

Update:
Read a bit more here from Redfin.

This is the policy I follow when buying. As an added bonus, it’s less wasteful. A higher-quality item will not only last you longer but you will want to keep it longer.

As the grandmother of our VP of engineering, Sasha Aickin, once said: When you buy something cheap and bad, the best you’re going to feel about it is when you buy it. When you buy something expensive and good, the worst you’re going to feel about it is when you buy it.