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I've actually had this experience: My favorite yoga studio, where I was going 3-4 times per week, did a Groupon; suddenly the room was packed and there was less space to move around in. It would have made sense for the studio to do the Groupon when they'd just opened and desperately needed advertising, but I was baffled by their decision to do the Groupon when they were already running at what, to me, seemed like optimal capacity. They attracted new customers, but they also alienated some old ones. (Though the deal wasn't "New Customers Only," so at least I was able to enjoy the discount.)

OTOH, I moved recently, and a studio near my new place did a Groupon. I probably wouldn't have heard of them otherwise (there are other studios that are closer to me). They did a small deal, something like $15 for a 5-class pass, and they did it at a time of year when they're at less than peak capacity (it's summer and the studio is near MIT). So, I'd say that deal made sense.

(As to $130/mo: Actually, I was happily paying that much at my studio. This studio's pricing seems to be in line with most: $15 for a single class, $130 for an unlimited monthly pass.)



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