American Apparel Source Raves About A $3 Million Groupon Deal

We've all heard the scary stories of businesses getting clobbered by Groupon deals that brought in more customers than a business can deal with. These horror stories suggest that Groupon customers won't spend more than they have to in order to use their coupons. But a source from American Apparel says he's seen sales numbers following his company's deal with Groupon "that disprove many of the ongoing doubts about Groupon."

He says customers who purchased the $25 Groupon – worth $50 – ended up spending an average of $70 once they cashed in the deal. Our source says the best part of the deal, though, was how American Apparel was able to add a whole bunch of Groupon customers to its own email list. "The killer was email address acquisition... We converted approximately 25% of in store redemptions into signing up for our email list... which is on track to generate an additional five to six figures in online revenue."