Anyone sent out a Groupon?

[GoodPeopleFlags]

Has anyone here done a Groupon coupon for their biz? We're thinking about it. Just curious if anyone has and how it worked out. Would you do it again?

 

[Locals Find!]

Isn't groupon that deal where X amount of people have to buy the deal in order to get it and if the X amount isn't reached no one gets it??

 

[CanuckSigns]

I have thought about it, i've spoken to a few ppl that have done it, and they tell me that groupon takes 50% of your price right off the bat, so if you are offering something for half price, you are only getting 25%.

I've always thought that groupon was great for retail type businesses, it would be hard to setup a fair system for custom work, which is 99% of what we do.

 

[The Vector Doctor]

Isn't groupon that deal where X amount of people have to buy the deal in order to get it and if the X amount isn't reached no one gets it??

No. It does have a limit though. The number of people who can buy a groupon is limited. I looked back at an old one that I thought I suddenly needed and it said that they allotted number of coupons were already purchased

 

[GoodPeopleFlags]

Actually, it's both. A minimum number of people have to buy it first before the coupons will be active. I've seen the number as low as 5; I'm not sure if it can be lower than that. Once 5 people (or however many it is) buy it, then the coupons are active and can be printed. The 1st 5 people's credit cards are then charged.

I think some companies put a max on how many coupons they will allow to be sold but I don't think all businesses have a max. There is a time limit, tho.

I didn't think the amount Groupon kept was 25% but I think that might be correct afterall. If that's the case, it may not be worth doing it.

 

[CanuckSigns]

Actually, it's both. A minimum number of people have to buy it first before the coupons will be active. I've seen the number as low as 5; I'm not sure if it can be lower than that. Once 5 people (or however many it is) buy it, then the coupons are active and can be printed. The 1st 5 people's credit cards are then charged.

I think some companies put a max on how many coupons they will allow to be sold but I don't think all businesses have a max. There is a time limit, tho.

I didn't think the amount Groupon kept was 25% but I think that might be correct afterall. If that's the case, it may not be worth doing it.

no, groupon gets 50% for example if you normally sell car magnetics for $100 a pair, and you put a groupon up for 50% off ($50) groupon gets 50% of that ($25) before you do anything, leaving you making $25 for the set.

Don't get me wrong, i think it's an amazing way to reach potential customers in your local area, but i'm not convinced it works for custom products, if someone can show me an example of how it could work I would love to try it in my area! The exposure (delivered to tens of thousands of inboxes every morning!) would be a huge plus!

 

[SqueeGee]

I might be small minded but I just can't see how Groupon is good for businesses.

 

[CanuckSigns]

I might be small minded but I just can't see how Groupon is good for businesses.

Groupon is great for certain businesses, I have been introduced to a few restaurants that i would have never gone to before, and i have gone back after without the Groupon and paid full price. My wife found a great hairdresser through Groupon that she goes to regularly now.

Like I said in my previous post, I can't see how it would work with a business that makes custom products, or any business without a "price list"

 

[GoodPeopleFlags]

Hey Watsons! That's what I meant about the 25% / 50%. I just said it wrong.

I think for some businesses it would be great, like a restaurant. People gotta eat. People don't gotta buy signs. So, for us (sign shops), when we offer a great deal, people may take advantage of that but may not ever come back again simply because they don't need to.

But, if we wanted to try it anyway, now I'm thinking of doing something like biz cards. We don't do them in-house and the markup is pretty good. Good enough so that we could make a few dollars. I think that might work better than some huge discount on magnetic signs or something like that. Any thoughts?

 

[SqueeGee]

Groupon is great for certain businesses, I have been introduced to a few restaurants that i would have never gone to before, and i have gone back after without the Groupon and paid full price. My wife found a great hairdresser through Groupon that she goes to regularly now."

If it generates repeat business as you have proven, then that's a plus. My concern is how much do you have to give away to generate X number of repeat customers. My sense is that there are probably more efficient ways to connect with new customers that doesn't require you to have a 75% off sale.

BTW, there are at least three Groupon copy cats in our little area alone. The barrier for entry into this "business" is very low so I wonder how Groupon is going to deal with that.

 

[CheapVehicleWrap]

50+% off NO way; sorry I'm REALLY not THAT cheap.

Had a client (restaurant) attempt it, but they could not limit it to weekdays only.

It's a FAD.... just like pockets.

 

[CanuckSigns]

If it generates repeat business as you have proven, then that's a plus. My concern is how much do you have to give away to generate X number of repeat customers. My sense is that there are probably more efficient ways to connect with new customers that doesn't require you to have a 75% off sale.

BTW, there are at least three Groupon copy cats in our little area alone. The barrier for entry into this "business" is very low so I wonder how Groupon is going to deal with that.

i agree, but I think that having your business name delivered to tens of thousands of inboxes everyday can only be a good thing.

Like I said, I think it's an amazingly effective marketing tool, just not for custom shops. if anyone can think of a way to successfully use groupon for a sign shop, i will put an ad up tomorrow! maybe Jon Aston can think of something?

 

[SqueeGee]

maybe Jon Aston can think of something?

I'd be interested to get Jon's take on it.

It's a FAD.... just like pockets.

That's funny stuff.

 

[SignManiac]

It's nothing more than a loss leader, just like the $39.95 magnetics to get them in the door.

 

[signswi]

Prefer livingsocial to groupon, haven't used either for the sign business though

 

[Farmboy]

We tried it. I was told from the get go by the sales rep that we would not get much interest and we would be run as a side and not the main. She was right on the money. After the alloted time we had one buyer.

 

[Jon Aston]

Strategy first, tactics second.

Unless you've already got a strategy and processes in play for retaining and developing new business with/through existing customers, you're wasting your time (and money) with loss leaders. What's more is that using a service like Groupon risks attracting the kind of customers you don't want and don't need... and therefore don't fit the strategy. Plus, if you go looking, you'll find stories of small business owners who had no idea what they were getting themselves into when they signed with Groupon and were pushed to the brink of bankruptcy.

So my advice (for most people) would be to stay the hell away from Groupon. Do something more strategic and sustainable with your marketing.

Apologies for sounding so categorical and stern. Think of it as tough love. That's my intent.

 

[Bigdawg]

I am an avid Groupon user... not a seller... and let me tell you why and when I buy. I've been to a Groupon party (yes they appreciate us little people lol) and talked with quite a few others. We all bought for pretty much the same reason.

1. It was someplace we go anyway or a product we would use. Not generally new customers for that.

2. The savings and the deal were just too good to pass up and it was something that we wanted to try.

3. For a gift.

I buy for all three reasons. the flip side to that is that many, many of the new places I've gone to aren't someplace I'm going to go back to. The deal was just too good to pass up so we tried it. The other side of that is I've bought Groupons and the company went belly-up that offered it.

I personally don't think a sign company would do well. It's not something that is an "exciting" offer - and Groupon does have some killer deals. I look at all the deals they offer every day. But most people just read the email for the deal of the day and decide yeah or nay then. I love my groupons... but I don't think I would as a seller.

 

[Colin]

Strategy first, tactics second.

Unless you've already got a strategy and processes in play for retaining and developing new business with/through existing customers, you're wasting your time (and money) with loss leaders. What's more is that using a service like Groupon risks attracting the kind of customers you don't want and don't need... and therefore don't fit the strategy. Plus, if you go looking, you'll find stories of small business owners who had no idea what they were getting themselves into when they signed with Groupon and were pushed to the brink of bankruptcy.

So my advice (for most people) would be to stay the hell away from Groupon. Do something more strategic and sustainable with your marketing.

Apologies for sounding so categorical and stern. Think of it as tough love. That's my intent.

Sage advice. Businesses don't make a dime with their Groupon offerings; the whole idea is to hopefully generate a returning customer, but like Jon indicated, those who use the Groupon deals are not the type to come back and happily pay the regular (full) price.

 

[TheSnowman]

It's a FAD.... just like pockets.

And the internet...