Groupola’s iPhone 4 fail

We all love a bargain, but with the influx of group buying sites in the last year offering up to 90% off your favourite kinds of treats, the taste is becoming a little bitter. It was all going quite well for Groupola – the MD Mark Pearson is the founder of MyVoucherCodes, giving them a quick-step into the already saturated world of discounted online deals, and they boasted over 1,000 fans on Facebook and Twitter even before their first deal debuted. That was until they decided to use  the iPhone 4 as a pretty pawn in their email harvesting game.

When I got the email announcing they were going to sell the deal of the century, unlocked and SIM-free iPhone 4s for £99, I sent it round to my colleagues, family and friends – well done Groupola, you got them to sign up for an account with their emails. An 80% saving isn’t going to repulse anyone, and their great reputation led many to believe this kind of deal would be a blast, including The Guardian who ran a story on the deal that same day. So on Friday 2nd July, we and, according to Groupola, 5 million other people tried to purchase the new iPhone for £99 from their site — if we could get on it. People started to get angry. People started shouting they only had 3 iPhones. People started wondering if this was a legitimate deal at all. They took to Facebook and Twitter in their frustration, creating hate groups and asking Groupola to make a statement to reveal if they ever had any iPhones in the first place.

By this time it all started to click into place. They had just created the biggest hype for their company as well as Apple and gained (according to their figures for the number of users entering their site that day) millions of emails from new users. Even though the hype backfired and many tried to unsubscribe from the company, I’d be interested to know the stats for the providers selling the new phone in the UK as to whether they got more visitors whilst the offer was going on, and what Apple has to say about the hype. I knew that Apple would never have agreed to sell the phones with Groupola at such a discounted price, which started off my concerns that the deal was a little fishy. I worked out that with 200 phones sold (as they claim) Groupola was working off a 90k loss at the start. Wow, risky!

What seems to be the most interesting is how they managed to get 200 iPhone 4s in their possession, or perhaps they’ll be handing out vouchers to the lucky buyers instead. The limit of 2 per person by Apple would have taken a while, so I’m interested to hear from anyone who was lucky enough to get one from Groupola – if they even exist in the first place. I ended up not being lucky enough and like 4,999,800 others I’ll be hanging around my provider for an upgrade. Even if it doesn’t save me 80%.

 Groupolas iPhone 4 fail
  • tracey taylor

    If you don’t mind me asking, do you post affiliate links for recommendations? I have had friends ask me to sign up for Groupon deals so they can earn £6.00 referring me. Groupola might offer something similar.

    I do feel that for all the hype about social media, this commercial spin on friendships is not good.

    I’m sorry you passed on a bad recommendation to people you care about. I’m sure your friends will understand.

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  • Deano

    Hi I believe I’m one of the lucky 200?? who managed to buy an Iphone for 99quid, I’ve been told by Groupola that they should have it/be sending it to me this Thursday/Friday. Trying not to get my hopes up to much, looking at all the comments left on the Guardian and other sites everyone thinks it’s a scam.

    What do you think will I be luck or will the date that I’ll receive my Iphone be keep being delayed??

    • http://macgasm.net Charley M

      Deano,

      I personally believe this was a very clever marketing exercise that backfired and has given them the worst press they could ever imagine.

      What I would really like to know from Groupola is whether they had 200 physical phones when they posted the deal, if not then they have a serious problem on their hands – false advertising (for which they can be fined for). I can’t see that Apple would provide them with 200 phones, only really on a business contract and even then it would mean they couldn’t sell those on legally.

      I suspect they never hand 200 phones at all and simply used this extremely “too good to be true” deal to harvest email addresses from many users to then sell on. I really do hope that you do get an iPhone from them, but of course if you don’t please report them to the ASA and claim your money back. Businesses who work like this give all the group-buying sites a bad name.

  • Mike

    Hi Charlotte, you might want to look into this: at 9.20am, Mark Pearson (owner of Groupola) himself, posing as a buyer, left a message in the Groupola FB wall saying: “i just got one iphone! it’s not a scam!”. Until 9.30am, no other users claimed be able to buy the iphone, so when other users questioned the veracity of Mark Pearson’s message and his identity, his profile and message was immediately deleted from the Groupola fan’s page at Facebook.
    My posts were deleted and blocked from Groupola webpage at FB, but unable to unsubscribe from Groupola’s mailing list.
    I already made a formal complaint to ASA.
    Hope you can investigate this further.

    • http://macgasm.net Charley M

      Thanks Mike, I missed that post but did see another couple of employees pretending to be “lucky buyers”. Their reaction of blocking people and deleting comments is not the way you use social media to help your company! Very very bad show indeed and one which will have cost them many of their loyal users.

      Let me just point out this Term & Condition from Groupola’s website:

      “5. We do not represent or guarantee the truthfulness, accuracy or reliability of any material contained on the Site. ”

      There ya go :)

      Have you managed to unsubscribe from their newsletters yet? It’s also illegal to send out mailings without a working unsub link.