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Steve B
08-22-2010, 05:12 AM
I just heard about this thing. After reading their website, I started asking around about it and it seems that a lot of people are participating and love it. Does anyone know any businesses that have used it? I can't figure out what their fees are - I'm curious about that too.

If you haven't heard about it, you might want to check it out. According to their website, a local business makes a very generous offer in the form of a coupon and they send it out via e-mail to their members. Nobody gets the deal, unless some certain min. is reached so everyone is motivated to e-mail it to their friends etc. It seems too good to be true from both the business point of view (Generating lots of new customers) and even the consumer side (the offers are usually 50% off or more). A recent one was that if you paid $25 - you got a $50 certificate at the Gap.

Anyone have experience with this on either side?

greenoak
08-22-2010, 06:21 AM
very interesting steve...
sounds brillliant ...with a big enough reason to join in...like the gap example...thats a real coupon!!!
i can imagine that really going wild on facebook...if its legal there....

Steve B
08-22-2010, 08:40 AM
Yes, they make big use of Facebook and Twitter to spread the word about the deals. Quite honestly, my biggest concern is that they might drive too much business to me too quickly and I'd have a lot of unhappy customers when I can't respond to them quickly enough. I'm thinking about it for my pet food delivery service. I currently have about 100 customers. It looks like a reasonable expectation would be 200 - 700 coupons being sold for such a thing. For instance my local Groupon has a local rest. offering a $20 coupon for $10. They have sold 707 coupons ... and counting! It didn't become a valid deal until they hit 100 - so the first 99 people were motivated to tell their friends. A massage place sold $60 certificates for $30. They sold 1,473 of them. As best as I can figurre, Groupon takes 50% of the cut. So they are actually only getting $15 for a $60 massage - but, obviously hoping to get a lot of repeat customers for the future.

It sounds great for a repeat type of customer. For instance, the offer I'd make on my pet food would result in me losing a bit of money on the first bag of food in hopes of signing up the customer for future deliveries at full price.

Of course, they don't have to agree to send out your coupon. My business might be too new - or because it doesn't have a physical location for them to check out. I'm not sure what their criteria is.

There are quite a few competitors popping up also.

Business Attorney
08-22-2010, 12:18 PM
I've am a Groupon user. I have only bought into one deal so far - $25 for a $50 coupon for a restaurant two blocks from my house. In Chicago, where it started, it is big. Unfortunately, for some small businesses, it is TOO big. Read this article from this week's Chicago Tribune: Growing with Groupon may be tricky for businesses -
Surge of customers can hurt bottom line or alienate regulars (http://www.chicagotribune.com/business/ct-biz-0816-groupon-20100816,0,7228387.story)

It might work on the pet food business but would probably be a killer on the pet fence business. What would you do if 200 new customers called next week wanting a pet fence installed?

Steve B
08-22-2010, 03:37 PM
Thanks for the article David. It seems like such an easy problem to fix. Just put a max. on the number of coupons that can be sold. For my pet food business, I'd be thrilled with 50. Anything over 200 and I'd have serious problems answering the phones and getting the food delivered. Other than greed, I can't imagine why they wouldn't allow a max.

greenoak
08-22-2010, 08:37 PM
thanks for the article..... i wouldnt mind the volume but i wouldnt like a discount under my cost.... i guess it wouldnt be happening down here in rural indiana anyway....
ann

Patrysha
08-22-2010, 09:23 PM
I think there are many ways to entice customers without giving away the store, but you should consider the lifetime value of the customer before dismissing an idea as too expensive. It looks like they are trying to make it work for businesses of all sizes...considering the GAP giveaway that went down this past week...

Steve B
08-23-2010, 04:38 AM
ann - they seem to be only targeting big cities. Their market is the young techno savvy group that get lots of thier info. from social media. They also need big volumes to justify their practice of only sending out one coupon a day.

greenoak
08-23-2010, 08:02 PM
right....i can imagine a do it yourself version...like within your stores facebook community..... its a pretty new exciting idea...can you tell im trying to think up some things for my 800 fans...who get my message every timei send it....!!!

Patrysha
08-23-2010, 08:33 PM
I think the best thing to do to get customers engaged, talking, participating is the same thing in the store as it is on Facebook. Ask for their help! Not all the time or like you're indesicive or something...but I found I almost always sold an outfit when I asked for shoppers opinions on dressing the mannequins/busts (do you think this outfit looks better with this necklace or this one? or whatever...you can do the same sort of thing online.

Contests are also a good way to engage. It doesn't need to be a big prize even a $10 certificate can go a long way to encourage participation when you're talking about customers who already know and love you...

greenoak
08-24-2010, 05:26 AM
great points patrysha....and id love to know more about their houses....it would help me buy right...im working on this idea...thanks...

Paper Shredder Clay
08-24-2010, 11:41 AM
I have bought a $50 gift card for only $25 for the Gap store. I still have to use it, but can't beat that. And I also saved on a haircut using it. Pretty cool but you got to be sure to check them out daily for that day's deal.

Steve B
08-24-2010, 09:10 PM
Patrysha - your ideas are good old-fashioned tried and true marketing tips that we all should be doing. But, it's not going to get you 600+ customers overnight. check out their website and see what it's all about.

Evan
08-24-2010, 09:28 PM
I receive daily e-mails from Groupon for my area, and there are a lot of great deals. Some businesses can handle the business that comes there way, but others I can see would hurt significantly. Specifically and business with small facilities. I've seen restaurants that would be unable to meet the demand based on these Groupon's, and some sole proprietors (photographers namely) offer services. Seems like a nice influx of business, but not everyone will be able to handle it.

Patrysha
08-24-2010, 09:48 PM
I've been there and I do know what it's about...been following the story for a while actually. If I'm not mistaken it was a case-study for some marketing website or another last year. I LOVE community geared stuff and shared marketing tactics, but I was responding to Ann's question about what to do on Facebook which does have to rely on the old fashioned stuff if a business is not investing dollars for the more elaborate stuff.

greenoak
08-25-2010, 08:27 AM
it sounds to me like a lot of groupon users might have the goal of only shopping when they get a big discount.... ,and you would sure save a whole lot of money in a year using those kinds of deals..it really helps degrade the idea of paying full price for anything..which is a big problem in retail already......
. ....maybe they are the super bargain hunters who wouldnt be likely full price customers later..
.. i doubt if it will get to my small town anyway....guess i better look it up....i would like it at 20 percent off but thats probably not enough....and im assuming its not for small towns anyway...
p.s. their website is really good.... imho...bright and cheery and easy to see whats going on....

Harold Mansfield
08-25-2010, 02:14 PM
So that's what that is. I keep seeing the ads all over the web and on sites where I have adsense (yes I still have a few, don't ask me why) it's the banner ad I see the most for the last few months now.
Sounds like a good deal.

KristineS
08-25-2010, 02:19 PM
I've heard a lot about Groupon but it is mostly in the larger cities. I live in a smaller city in Northern Michigan and there isn't a lot going on for my area, at least not yet, so I haven't tried it.

From a business building standpoint, it sounds like it might be worth a try if you're in a larger area. You'd have to calculate your potential ROI pretty carefully, but if you make the right sort of offer it could be worth it.

Steve B
08-25-2010, 08:22 PM
I got a little feedback today from their competitor (Living Social). She said my pet food delivery may not meet their requirements because the business is supposed to have a physical location. She liked everything else about how my business might work with their coupon so she said she would see if she could make an exception. She told me they keep 40% of the revenue generated from the coupon (I heard Groupon is 50%). If the chose to run my coupon - it could be a huge increase in business for me. I'll keep my fingers crossed.

prettyimpress
08-27-2010, 10:21 AM
I just registered the website by accident today.But I didn't check their website carefully. I just noticed that they will send email to me everyday. To be frank, I don't like it. But I think it is a successful case about viral marketing.

Steve B
09-03-2010, 09:59 PM
Well, they officially rejected me the other day. She said they didn't have success in the past with a pet related service, so they won't do anything else relating to pets.

It's weird begging an advertiser to let you do business with them. They really have something hot right now.

I'll try again in a couple months and see if they will change their mind.

gabearnold
09-06-2010, 09:29 PM
Steve,

I've been doing a lot of reading myself on Groupon and I have actually heard that pet related services are always rejected. It's kind of odd. I've actually considered starting this type of service just for pet related businesses, but I don't know if there would be enough response. What do you think?

Steve B
09-07-2010, 04:26 AM
Well, obviously I'm not objective on this topic. But, I think there is definitely a market for pet related businesses and lots of other categories they reject (any type of business without a location for instance - handyman services, painters, plumbers etc.)

I just sent the LivingSocial (their competitor) representative a long justification why my service would cover a much larger demographic than some of their recent ads. For instance, yesterday they featured a coupon for 50% off a glass blowing lesson! C'mon, how many people would be interested enough in that versus feeding their dog or cat (where location of the deal is a non-issue since delivery is free). I think they had a bad experience with a dog groomer - but only 30% of dogs even need to be groomed. Hopefully, I've made a good case and they'll try me out.

By the way, I just checked and the glass blowing place sold 329 coupons! For whatever reason, this type of marketing is incredibly effective. I spent $6,000 last year on a 2 minute television spot that ran for 18 weeks and I got a grand total of 6 phone calls (that was for the fence business).

FYI - the revenue generated for the Living Social company on the glass blowing deal. (329 x $25 x 40% = $3,290). Not bad - considering their variable cost for that ad was pretty much Zero. They hit the send button on their e-mail distribution list! So, it's a great business idea from their end. I wish I could figure out a way to generate that kind of cash without working up a sweat.

pennylane
09-07-2010, 11:24 AM
My friend Debra is a photographer in San Francisco. She placed an offer on Groupon a couple weeks ago and sold out all 700 sessions in a few hours. I think it's brilliant publicity as well as a way to bring in new customers for certain types of businesses. It seems especially great for retail, restaurants and any type of service business. Be prepared to offer a really good deal.

greenoak
09-09-2010, 09:12 AM
hopefully the photographer made some money on the 700 sessions...
i dont get the math...if your mark up is 2.5 , normal retail markup, and the discount you offer on the groupon coupon is 5o percent off; and then you pay groupon 40 percent ...whats left for you?
this would be ok if it really brought you customers past the coupon, if they came back or bought things other than the one item.... if those good thngs didnt happen , wouldnt you be in the RED... big time...i would probably still try it on something if it was available here....
.. if you looked at it as an ad that would justify the risk more...

Spider
09-09-2010, 09:29 AM
I don't see this as a long term business. The more popular it becomes, the more "Groupon-hoppers" will be created. (Groupon-hoppers = people who buy only these offers and hop from business to business as the offers are received.) The only way this makes sense for the client-business is being very sure the majority of initial groupon-buyers come back for repeat business, and the less likely that is to happen as the scheme gains in popularity.

Green stamps came and went. Free toasters for opening a bank account came and went. Sets of glassware for gasoline came and went (at least this one created repeat business.) I think Groupons are a fad that will fade in due course.

Steve B
09-09-2010, 04:00 PM
Good points above. You have to look at it as a "loss leader" or an investment in future returns based on your confidence of gaining repeat business. I definitely don't understand why some companies do it. One guy just sold 100 car details - done on the customer's location. I can't imagine enough of the people will call him back when his price is back to normal. On the other hand, a theater that's going to have a bunch of empty seats anyway ....

With my dog food, I almost feel like a crack dealer. The dogs love it and it's so much healthier for them that a large percentage will become long term customers. You know - the first one's always free concept.

I got turned down by one of them, but Groupon finally called me and it sounds promising. I'm sprucing up the website and doing some other things to be prepared in case they decide to run it.

Steve B
10-06-2010, 03:30 AM
Well, I finally got accepted and my feature will run in a couple weeks. Unfortunately, they are only running it as a "side deal" and not the main feature. The side deal gets considerably less attention. But, it's better than nothing.

A friend of mine just ran as a main feature. In one day she sold 1,200. She has a stone ware business where they make custom pottery. Her deal was for half off of their tour of the factory and being able to paint a piece of their own pottery. Since the tours don't actually cost her anything, she will make a ton of money from this if even a very small percentage of the visitors buy something above and beyond what they already got with the coupon.

greenoak
10-06-2010, 07:35 AM
cant wait to hear about it..
..maybe the dogs will get hooked on your fabulous dog food!!!

Canonical
10-09-2010, 07:08 PM
I just heard about this thing. After reading their website, I started asking around about it and it seems that a lot of people are participating and love it. Does anyone know any businesses that have used it? I can't figure out what their fees are - I'm curious about that too.

If you haven't heard about it, you might want to check it out. According to their website, a local business makes a very generous offer in the form of a coupon and they send it out via e-mail to their members. Nobody gets the deal, unless some certain min. is reached so everyone is motivated to e-mail it to their friends etc. It seems too good to be true from both the business point of view (Generating lots of new customers) and even the consumer side (the offers are usually 50% off or more). A recent one was that if you paid $25 - you got a $50 certificate at the Gap.

Anyone have experience with this on either side?

Groupon is TOTALLY on the up-and-up. It's a relative newcomer, but they have a very different twist on couponing. They are killing it right now. And have very targeted coupons based on your location. Great company... great concept. They'll be around for a long time IMO.

Steve B
12-11-2010, 08:01 AM
I just realized I never posted the results of the Groupon "side deal" they ran for us in late October. I can tell you we were dissapointed with how many of them we sold (40). But, since we only paid based on the amount that were sold - it was still the best money I've spent on advertising BY FAR. And, "by far" isn't an extreme enough term. The people that bought our Groupon were, for the most part, serious about trying out our pet food and service. 74 percent of the ones that have been redeemed so far have continued with the service after their Groupon was used. On a cost-per-customer basis, nothing I've ever done has come close.

However, from Groupon's perspective, they didn't make nearly as much money off of us as they usually do. I knew our chances were slim that they would run us again (why would they want to make a few hundred from us when they can make several thousand if they run a different business). So, I told my rep. that we would be available on short notice if they ever got a last minute cancellation. My strategy has paid off. They needed a business to be featured on Christmas Day and I volunteered. I'm sure Christmas will be the worst possible day to be a feature, but it is better than nothing!

Just to put the 40 Groupons that we sold in perspective. The other day, they had a Groupon in our market (Louisville) for $18 worth of gourmet cupcakes for $9. They sold 3,705 of them! That's just in Louisville. Groupon will keep half the revenue generated - or $16,673. Since they had already featured that cupcake company before, they didn't even have to create any new graphics. All they had to do was hit the "send" button to their e-mail list (perhaps a slight oversimplification, but you get the idea).

Groupon has really hit on something. They recently turned down a purchase offer from Google for $6 Billion.

Steve B
12-28-2010, 06:49 AM
Our Christmas Day Groupon has finished. We sold 66. We're thrilled with that since it will potentially increase our customer base by 50%, but I imagine it will be a long shot for them to run us again unless they get a last minute cancellation.

Business Attorney
12-28-2010, 11:32 AM
Congratulations, Steve. It sounds like Groupon really works for you.

If these coupon buyers convert at the same rate as your first group of 40, and you are more comfortable that the customer acquisition costs are still much lower than any alternative, maybe you can cut a deal with Groupon that gives them more of an incentive to run you again. For example, maybe you can afford to give them 75% of the revenues and still have lower customer acquisition costs than from using other methods.

Steve B
12-28-2010, 06:04 PM
That's a good thought David. I never thought in terms of negotiating in that direction. BUT, I never did any advertising that actually worked before either.

Patrysha
12-28-2010, 08:08 PM
Have you made your presence known in the shelter, vet and show communities within your community? I would think those would be relatively easy to reach targets for publicity outreach and partnership...

Steve B
12-29-2010, 03:23 AM
Yes, yes, and yes. Keep in mind, the Groupon was not for the fence business, it was for our pet food delivery business. Those places are all in bed with the major food companies. Most of the Vets sell food in their lobbies, so they aren't really willing to help us. The shelters usually get free food from the Hill's company (the maker's of Science Diet) so they aren't allowed to promote any other pet foods. The big dog show in our area is sponsored by a different major food company.

Patrysha
12-29-2010, 03:18 PM
Ahh gotcha...yeah my mind was on your fence side of things when I posted...I was pretty sure you'd already explored those avenues, but thought it wouldn't hurt to double check. I'm wondering if it wouldn't be worth it to you to buy the local lists from Dog Fancy or whatever the best national niche magazine might be and send out a proven direct mail series...it'd be pricey but worth it if you've got a good conversion series to work with.

daveb
01-03-2011, 01:30 PM
the power of community prevails again! i think thats a really good idea . humans, sadly, are driven by greed. however we are driven by greed either in positive or negative ways

n_touch
03-10-2011, 01:44 AM
Give you a little tid bit of info for when you use groupon, make sure that if youhave an opt in email program that you are using groupon to grow that list. I work with restaurants, and we ran a few trials with groupon and made sure that everyone signed into the opt in program. It ends up working to fold, not only do you get the little increase in business, but then you also get a new client that you can potentially turn into a loyal customer.

greenoak
03-10-2011, 08:19 AM
just read your results steve....thats just wonderful...and you have such a good comeback product .

deesseboutique
03-18-2011, 01:16 AM
Steve - I read the first page of this thread then skipped ahead to the end (sorry 38 pages was too much to wade through). I have a couple of questions.

I too joined Groupon back in November - applied to be featured (I am a gift shop and this was going into the Holiday shopping season, figured I had a good chance). While I was waiting to hear back I set up the "Groupon Store" feature - and even posted a deal. This part requires you to promote it yourself though, you get no perks or access to the millions of Groupon users, other than the deal resides on the Groupon server. Thing is though, it is very HARD to find it on Groupon. There is no search feature (can't figure out why), no link to Shops, or Merchant listing, nobody would know I was there unless I sent them a direct URL to the shop.

Results were poor - only sold 2 - but I also didn't promote it heavily, I wasn't sure exactly how it would work out.

Then - a few weeks later I get an email saying I am not qualified to post deals yet - that I now need 25 users to "follow" my shop (not on FB but on the Groupon site) before I am allowed to post deals.

Is this what you meant by a "side deal" ? Did you post a deal through your Groupon Store ?

Eventually I got a "sorry no deal" email saying they are just too swamped with requests. Sigh ...

It is a shame too, because I have two locations and lots of interesting merchandise.

Angela
Deesse Boutiques

deesseboutique
03-18-2011, 01:35 AM
Oh - and the other question was - how did you do your first Groupon ?

Did you apply to be featured ? How long did it take to get on ?

PS - I am in the Chicago area too, outer suburbs so my deal really would appeal
to a decent geographic area and I see other shops in my town getting featured.

The thing to remember with Groupon is that it really isn't for a business that can't handle many multiple sales (like the nail salons that had people coming in groups of 8 wanting to all be done together and they didn't have the capacity).

The numbers can get pretty nutty. I see a catering place a block from me had a deal on a 1 lb tray of brownies ( I bought one ... yea ) and they specified that you had to call the order in ahead and arrange for pickup. They sold 774 of them.

I guess they figure they can bake them fast enough to accommodate the orders that come through each day (I haven't called on mine yet) if they have advance notification. Still - you have to be prepared upfront with the supplies and manpower to fill those 774 orders. You can put a limit on your offer - so key it to what you know you could produce at the outside.

I look at Groupon as a "loss leader" type of advertising. You give out a super deal to get them in the door, you have great stuff to sell / offer and that makes them a permanent customer without the 1/2 off deal next time around.

Now if I can just get featured ...

deesseboutique
03-18-2011, 01:37 AM
On the Groupon Store deal - where you promote your own, the cut was 30% of the sale.

Steve B
03-18-2011, 05:35 AM
Hi Angela - I never heard of the Groupon Store. I don't think they have it in our area. Louisville is smaller and they don't have all the features in our area yet.

The Side Deal was a deal that was in addition to the main deal of the day. It was much smaller and listed on the side of the page. It ran for three days instead of 1.
We sold 34 of them when we were the side deal in October. Then, a couple months later we were the main deal, but it was on X-mas Day (which was also a Sunday) and we sold 66. Of the 100 that have been sold only half of them have been redeemed. Of the ones that have been redeemed, about half of them have continued as customers. It's perfect for a repeat business like my dog and cat food delivery. I'll probaby have some of the customers for many years as people are very loyal to their dog food.

I applied for the Groupon deal by filling out their form on-line - then I got a phone call within a couple weeks. I would imagine your market is going to be much harder to get listed since you have so many more businesses.

FWIW - I would think a gift shop would be a terrible fit. I think you would have too many people wanting to spend the amount of their Groupon and nothing else, then you'd never see them again. I would think you'd have to limit the purchase to some type of merchandise where you had a particularly good mark up. I think it's a great fit for some businesses, but not all. A friend of mine has a pottery factory where a customer can paint their own pottery. It's a large local institution that's been in business over a hundred years. She gave a half price Groupon for a tour of the factory. The tour doesn't cost her anything, and many people decide to buy something at full price on the way out. She sold 1,200 and it's extremely profitable for her.

D. Meyers-Jspot
03-19-2011, 10:59 PM
Groupon is an interesting model, and can be very useful for some businesses, although expensive. Things are moving more towards mobile and location-and the new self serve platforms like the one we're working on can provide a more affordable option. The other plus is they can be better for customer retention and loyalty, while still proving new customer exposure for those looking for your offer in real time.
Cheers.

mobile resolutions
03-21-2011, 02:10 AM
@Steve and anyone else interested

Groupon and Living Social are great ways to get traffic to your business, but they don't help you capture customer info. Groupon and Living Social get the customers email address, but last time I checked that info was not passed on to the business owners. How will you keep connecting with the new customers and bring them back for repeat business once they use the Groupon or Living Social Offer. Adding mobile to your current marketing campaigns is a great way to capture 100% permission based customer cell phone numbers to send them coupons and specials you have in the future. Another plus to using mobile is there is no middle man taking 40% or 50% from an already discounted sale...all monies go to you the business owner. Mobile campaigns create a win-win situation businesses increase sales and customers get mobile coupons and other info directly from the businesses where they want to spend their money.

deesseboutique
03-21-2011, 02:30 AM
Actually Groupon would be a good fit for my business. I also manufacture most of my products, and the others are high enough margin that it would be ok.
Also - I sell a lot of "consumable" products like soap, candles, lotion and perfume and once I get someone to try the product they are pretty hooked due to the quality and customization I provide.

Getting the new customer through the door the first time is the hard part and that is what Groupon can do for me.

Angela

Steve B
03-21-2011, 06:07 AM
Angela - it sounds like you do have a perfect situation for a Groupon type of campaign.

Groupon does not give you anything other than a name of the people that bought your Groupon. BUT, when they call me and want to get their delivery I get all their contact information and stay in touch with them as appropriate.

CloptonCapital
03-21-2011, 05:35 PM
Groupon is a great way to get MORE business but you usually have to give the farm away. Years ago Wal-Mart had a $2 per gallon pickle promotion. They wanted to show the World how low prices could go. The sales of the pickle company's product went through the roof but they lost millions simultaneously. Their sales at other grocery stores tanked and they depleted their supply of new product.

The moral of the story: don't give the farm away

deesseboutique
03-22-2011, 01:08 AM
Yes, but, this is pretty much a "one time" loss leader giveaway. Obviously people know they aren't going to get a Groupon deal every time
they walk in. As a consumer though, it is a great way to try out a new store, restaurant, caterer, or service and if they provide excellent service and value for your dollar you will continue to patronize them.
If your experience is just so-so then maybe not.

I am banking on them having an exceptional shopping experience and getting some product into their hands is a guaranteed good chance that I will get a repeat customer out of it because I provide something the big boxes don't and can't provide.

dailydealinsider
12-30-2011, 02:23 PM
I think there are many ways to entice customers without giving away the store, but you should consider the lifetime value of the customer before dismissing an idea as too expensive. It looks like they are trying to make it work for businesses of all sizes...considering the GAP giveaway that went down this past week...

Great point! Also it's good to keep in mind that the daily deal idea is about replacing an alternative marketing costs. Ask yourself how much you would have spent to get comparative marketing done. If they're sending out tens or hundreds of thousands of email about your business, what would it cost to get that exposure otherwise?

greenoak
12-30-2011, 02:44 PM
i have a big retail store and im not going to be doing those big daily deals... .... the buzz ive heard is that its not worth it...and that it mainly brings in folks with no loyalty...who are totally about the discounts....our town is too small anyway for groupon....but ive heard way more negative than positive about the whole idea in the last few months... at first everyone was hot for it...

dailydealinsider
12-30-2011, 02:45 PM
Steve,

I've been doing a lot of reading myself on Groupon and I have actually heard that pet related services are always rejected. It's kind of odd. I've actually considered starting this type of service just for pet related businesses, but I don't know if there would be enough response. What do you think?

Yeah, this can be disappointing for some business'. The daily deal model is a little finicky about what deals sell enough for the daily deal site to run the offer. Remember, there is a very high opportunity cost for the daily deal business. If they choose your deal, and it sells none, when they could have run a high selling offer they're hurting themselves. There are lots of business' that can't be run, so don't think it's just dog care, eg: taxes, most physical training, legal, medical. The daily deal is usually a best fit for personal treats or impulse purchases. There are some exceptions, but if your business is healthy/responsible vs fun/treat it might be be a good fit. And a bad showing on a daily deal site doesn't' ever leave Google and that is just as bad a bad reviews.

dailydealinsider
12-30-2011, 02:58 PM
So I've seen a lot of people comment about "loss leader" marketing. I'd really encourange people to think about the daily deal as a replacement for the cost of other forms of marketing @Steve B gave an excellent example of how he spent thousand on another form of marketing. If, when you evaluate daily deals, you count the cost of the marketing that gets done you'll discover that the product being offered is a great deal.
These business' send out 10's of thousands of emails for your business. And in a format people are actually looking forward to receiving. That's the real product the business owner gets from running a deal. It's temping to think that the vouchers are part of your sales stream, but they're just an accounting trick to make reaching people less expensive for you.

Steve B
12-30-2011, 03:58 PM
Interesting this thread has been dug up again. I'm going to be on Groupon tomorrow as a side deal for the next 5 days. It's going out to 250,000 emails in my area. The side deal won't do much for us - but it's better than nothing. They won't run me as the featured deal because they make too much money on the laser hair removal and other similar services. Groupon is still the only thing I've found that is worth the money and effort for my pet food delivery business.

Watchdog
04-24-2012, 09:26 PM
Interesting this thread has been dug up again. I'm going to be on Groupon tomorrow as a side deal for the next 5 days. It's going out to 250,000 emails in my area. The side deal won't do much for us - but it's better than nothing. They won't run me as the featured deal because they make too much money on the laser hair removal and other similar services. Groupon is still the only thing I've found that is worth the money and effort for my pet food delivery business.

Hi Steve, How did that Groupon work out for you? Just Curious.

Steve B
04-29-2012, 06:37 AM
It worked out great for us. Since we only pay for the # of Groupons sold - it's a no brainer for us. If we sell one we're happy and if we sell 200 we're happy. It's now been well over a year since our first Groupon so we know our retention rate and it's the most positive return for our investment we've been able to find (by far). I think we sold 22 (not bad for a side deal on New Year's Day).

We just ran on Amazon Local and sold 51. They were happy with that, so they plan to run us on Living Social in the next few months (another platform owned by the same company). They said we should sell 3 or 4 times that many on Living Social. We can't wait.

Watchdog
04-29-2012, 08:15 AM
Great that it worked out for you!

I was under the impression that if you went to another service that Groupon won't run your deal again, do you know this to be true or not?

Beside the new customers which is the reason we do this in the first place, what else do they offer you to run the deal.

Steve B
04-29-2012, 08:19 AM
Groupon doesn't want to run you if you've been on a competing site within the last 90 days. They also request that you not run on a competing site for 90 days after they run your deal. They last ran us on New Year's day - so we've stayed within their rules.

I'm not sure I understand your second question.

Watchdog
04-29-2012, 08:31 AM
The second question - is you're running the deal to acquire new customers.

Do you get customers information so you can continue to promote your services to them or remind them that they have a coupon that's about to expire?

Last I heard is that they give you a list of coupon codes and names but no contact information? Is this contact information available or not (even if there might be a fee attached for it)

Off the wall a bit

and I'm not sure how true it is but I thought I read that a business can not require a customer to be added to an email list to take advantage of a deal. As a business owner do you know anything about this and if it's true or not?

Steve B
04-29-2012, 10:31 AM
Groupon gives us very basic information. I think they used to give us names, but now they just give us codes for each Groupon that was purchased. Amazon Local gave us a list of names and codes. Addtional contact information is not available to us (nor do we want or need it). 85% of the people that have purchased our Groupons called us to place an order, so we get it all at that time.

Perhaps since we're a delivery service it's not an issue since they can't pick up our product (we don't have a retail location). So, we have to get a name and address. We always get their phone number and e-mail also. About 2% of people that call don't have an e-mail address - but, it's not required for our service.