Would you use our deal service.(business owner / Consumer)

[Watchdog]

We're currently relaunching the ShopPass service in Southeastern WI (Chicago next)

Our original ShopPass.com web site and service long ago had a feature that allowed businesses a way create coupons with expiration features, ect...it failed miserably.

The reasons were several including stats and control. Businesses also wanted it done for them, seriously and understandable. I was ok with setting up the coupon, but with no way to control how many coupons were available and how many each user can clip or save and, and , and.... it was hard to justify a cost / fee. To the few businesses we talked to, stats are everything. Who - what - where - when.

Now we have a revamped ShopPass and we're relaunching with better features... ShopPass now has all the features of a daily-deal service offers - but we're changing the rules a bit.

No revenue share. We're not collecting the money upfront or sending the businesses a check. (lots of benefits of not collecting the money upfront)

All coupons are claimed using our unique ShopPass credit system.

No longer a free service to members. Our goal is to offer great deals that members are willing to spend one of their ShopPass credits on...

To get the coupons - ShopPass credits are required and can be purchased in packages or individually.
All coupons are emailed to the member with a unique tracking number and saved in the members account for printing.

We have a lot more features, but we're looking for opinions on the idea itself.


Looking for honest opinions please. Got questions, please do ask.


Thank you in advanced.

[tmerrill]

Hi Watchdog,

I think your idea is interesting. It sounds like something many businesses could want to use in their marketing. Are you targeting businesses specifically in the Wisconsin area? Have you asked any of them whether they thought your idea was a good one?

Another thought that occurred to me was, what are the other coupon sites doing? I'm not very familiar with the other sites (except for the commercials on Pandora), but how are you differentiating your business from theirs?

I think if you have answered these questions, you probably have a great idea and should keep running with it.

[huggytree]

so all your site does is have coupons on it?

(im in your area) SE WI

i wouldnt be interested because my business doesnt use coupons...i find it only gets the frugal customer and i find the frugal customer to be the worst type of customer

[Watchdog]

Thank you Tmerrill,

For starters we are only in Wisconsin at this time. (once our boots are running full speed we'll expand into other cities)

Create | Publish and Share - once the business is verified they can actually work out any deals at anytime. These can be found be anyone that is subscribed to their area or by choosing all live deals in their city from the city list.

We offer full local support so they can just tell us what they want and their account manager will get it done.

Every business will be assigned an account manager to support the service and help answer questions also with the search. This person is responsible for customer service and support (basically sales) The account manager will be paid a percentage of each coupon distributed. He will work our ShopPass search and use this to help distribute the coupons.

An account manager can be a hired employee or a marketing group.

The back end is very easy for anyone to just click and fill in some of the blanks, save as draft or publish on the spot.

We made our service scalable and easy for the end user.

We're going to actually invite several businesses to try it live on our development site. Businesses will be able to test all the features and give us some important feedback.

Hope this helps answer your questions. Please do feel free to ask anything and hopefully I can answer your questions.

Bud

[Watchdog]

so all your site does is have coupons on it?

(im in your area) SE WI

i wouldnt be interested because my business doesnt use coupons...i find it only gets the frugal customer and i find the frugal customer to be the worst type of customer

Every listing comes with a link to all about your business, web site, reviews if you want them as well, it all about you and you tell us how you'd like it to be. Even if you're not always having a coupon on it. Our search is the same search that has been very successful in some of the bigger search engines.

These deals are also data for you, who's actually saved your coupon, when? And if they paid for the coupon, they are more then likely very interested in your offer. These are not extreme deals and can be used to get your foot in the door.

Thanks for your feed back, it is appreciated and give me a call if you change your mind or would like to know more.

Bud

[Watchdog]

so all your site does is have coupons on it?

(im in your area) SE WI

i wouldnt be interested because my business doesnt use coupons...i find it only gets the frugal customer and i find the frugal customer to be the worst type of customer



:) I would think most customers today are all somewhat frugal in one way or another.

[krymson]

i wouldnt be interested because my business doesnt use coupons...i find it only gets the frugal customer and i find the frugal customer to be the worst type of customer

You couldn't be more correct... Customers are more frugal now days but (for my industry for example) some people think the can hire a web designer to create the next facebook and expect to pay $100-$150 bucks... or offer a percentage which means nothing when it fails and that "frugal client" is out nothing and that web designer who spent countless hours working has nothing to show for it but a bitter taste of some cheap liquor because he didnt make any money to buy some better stuff ;) Its those people that take advantage... and your business barely breaks even because of it.

[Steve B]

I'd be worried that people would't want to spend money (credits) on a coupon when they can get them for free from the other sites (Groupon, Living Social, Amazon Local, etc.).

[Watchdog]

I'd be worried that people would't want to spend money (credits) on a coupon when they can get them for free from the other sites (Groupon, Living Social, Amazon Local, etc.).


No one is getting anything for free on the other sites, they are actually paying for the entire deal upfront whether they use it or not. Impulsive spenders are common and that's a big part of the business model, buy it now to save. Do you really want your customers out there that paid for your deal, but didn't see the fine print that will not allow them to actually use it.

ShopPass has that feature as well but it's not at any risk, if the business "goes out of business" or the deal was "to good to be true" the consumer can't get to the food place or your store on time they are only out 1 credit. But in the mean time you put your coupon in the hand of a customer that was willing to pay for it.

If the coupons don't get distributed you got free advertising and you're not out anything. We even have the required coupons to be distributed to make the deal good to go or the famous tipping point, just not too sure in the beginning how that would work.

No credit card on file?

ShopPass credits never expire and unlike magazines, like I said we're putting the coupons right in the hands of those that actually want to try your business...not on page three of someone waiting for the local sub shop coupon.


Thank you for your feed back. I'll be setting up free account for any business that want's to "test it" on www (dot) dev.shoppass (dot) com

Just to demonstrate the required deals for the deal to tip I added that to the "today's deal" on the link below in my signature. :)

[Watchdog]

You couldn't be more correct... Customers are more frugal now days but (for my industry for example) some people think the can hire a web designer to create the next facebook and expect to pay $100-$150 bucks... or offer a percentage which means nothing when it fails and that "frugal client" is out nothing and that web designer who spent countless hours working has nothing to show for it but a bitter taste of some cheap liquor because he didnt make any money to buy some better stuff ;) Its those people that take advantage... and your business barely breaks even because of it.

A coupon doesn't mean you have to do anything without a down payment. And you're correct on this in the service industry...but it can actually be a coupon for one month of web site or any industry maintenance plan? and you get your name out - links to your web site ect.

Thank you for your feedback.

[TomWbl]

I like the idea- will all coupons be 1shoppass credit? or will some be more?

my only advice, change the 3 pictures on your website to better quality pictures

[Watchdog]

I like the idea- will all coupons be 1shoppass credit? or will some be more?

my only advice, change the 3 pictures on your website to better quality pictures

Thank you Tom,

Currently all shoppass coupons will be 1 shoppass credit. We do have the ability on each deal to charge more credits.
This would be for limited special deals if we see a need to do it. The technology is there we just have it default to all deals at 1 shoppass credit.
Thanks for the feed back and il look into the images tonight when i get in this evening. ;)

[Watchdog]

Its fair to say that we need to generate revenue. Especially when we grow our email promotions. It's easy to just take credits but it has to be bring you the business results too. If we have a really great offer it and just give it way...your return or the chance of the customer redeeming it is not as great as if we sell the same amount of credits to less people. One advantage of the credit is will be saved by you those that actually want to use it.

If i want a deal and it cost me a credit i might give up a credit just to not loose out on the deal if i decide to usse it. Whereas if the deal cost me 4 credits -i really have to want the deal to use 4 credits. Better for the businesse and our service.

Sorry to seem so long winded. Hope i answered your question.

It also goes the other way. We can set the deal to zero credits as we have on the dev. Site. A businees might have super deal that we can arrange to give up our credit fee.

[huggytree]

:) I would think most customers today are all somewhat frugal in one way or another.

very few of my customers are frugal......it may depend on how you define frugal.....frugal=cheap???

many of my customers want the job done right...price is secondary and not even brought up by some

im strongly against coupons for businesses like mine....they bring out the cheap skates looking for the 'deal'......quality and service are more important to my customers...price is always part of the equation, but typically #2 or #3........for coupon people its #1

i use coupons for groceries (sometimes) and for restaurants(some times)....id never use a coupon for a tradesman as the coupons either seem to mean they are WAY overpriced to start with or they are Bottom feeders trying to be the cheapest...

i dont see any middle of the road tradesman giving coupons for their service....

[Watchdog]

very few of my customers are frugal......it may depend on how you define frugal.....frugal=cheap???

many of my customers want the job done right...price is secondary and not even brought up by some

im strongly against coupons for businesses like mine....they bring out the cheap skates looking for the 'deal'......quality and service are more important to my customers...price is always part of the equation, but typically #2 or #3........for coupon people its #1

i use coupons for groceries (sometimes) and for restaurants(some times)....id never use a coupon for a tradesman as the coupons either seem to mean they are WAY overpriced to start with or they are Bottom feeders trying to be the cheapest...

i dont see any middle of the road tradesman giving coupons for their service....

I hear you, they are not for everyone. Thanks for your opinion.

[Steve B]

"No one is getting anything for free on the other sites, they are actually paying for the entire deal upfront whether they use it or not".

Yes, but they aren't paying a third party in order to get the coupon in the first place. What they are paying for is the service or the product they are interested in, they don't have to buy any credits in order to buy the product or service they are interested in. If they were going to have to pay money to get a coupon - it better be one heck of a coupon! I think that's the part of your model that will cause you the most difficulty. Any other coupons that consumers have access to are given to them for free, I personally don't think people will go for this. I hope you prove me wrong.

[Watchdog]

"No one is getting anything for free on the other sites, they are actually paying for the entire deal upfront whether they use it or not".

Yes, but they aren't paying a third party in order to get the coupon in the first place. What they are paying for is the service or the product they are interested in, they don't have to buy any credits in order to buy the product or service they are interested in. If they were going to have to pay money to get a coupon - it better be one heck of a coupon! I think that's the part of your model that will cause you the most difficulty. Any other coupons that consumers have access to are given to them for free, I personally don't think people will go for this. I hope you prove me wrong.

They are paying a middle man, he's a billionaire now :)

We're not trying to replace any of the other daily deal sites that work off of large commissions. We're just creating an alternative for consumers that would rather not pay anyone upfront.


I think that's the part of your model that will cause you the most difficulty.

No doubt, it will be hard. There are thousands of start-ups that go after the world with no clue how to have their venture make money. Many figure if they offer it free, they will get the traffic and they will then make money but they don't still know how other then to sell advertising. I've been down that free road before, it didn't work. ShopPass is business model that will support a sales team and customer service and also where the earning potential is unlimited.


Lets take a 100 dollar daily deal, you give a 50% discount and a voucher is sold for 50 dollars (that 50.00 is the cash value of the voucher) you get a check for $25.00 from the daily deal site.
Because a consumer paid 50.00 for the deal upfront (like the gift card laws) In many areas A daily deal voucher has a cash value for somewhere in the area of up to 5 years (5 YEARS) so in 5 years from now a consumer strolls into your place of business after the voucher expires, I believe you're still obligated to give them 50.00 of product or services long after the 25.00 was given to you and spent. Look at the fine print on living social and when the coupon actually expires?

This is for a deal you buy today.

PAID VALUE EXPIRES ON April 27, 2017 (not what you got paid, but what the consumer paid)
PROMOTIONAL VALUE EXPIRES ON August 28, 2012


Lets take a 100 dollar ShopPass deal, you give a 75% discount (very hypothetical) the consumer claims the ShopPass coupon using a ShopPass credit, they redeem the ShopPass coupon - paying you the $25.00
It expires in 30 days... end of story. If it ever came down to what's the cash value of the coupon, it would be the 1 credit they paid for it. and honestly, that would be our issue, not you the business owner. But also you don't need to give 75%. You could be at the 50%.

People pay for Entertainment books because they get their moneys worth, they are paying for coupons. How many are not redeemed - it doesn't matter to most, they save more then they pay. What's the businesses cost for that. What ever it is, the business know that the coupon expires in Nov! End of story.



I personally don't think people will go for this

It would be a case we'd have to prove for sure or better put SELL. However, one doesn't have to search too hard to show people all the deals that went south... or all the businesses that closed or the businesses that the deal didn't work out. Or the risk of online credit card info being stolen over and over?

[Steve B]

"They are paying a middle man, he's a billionaire now"

Actually, the merchants paid the middle man not the consumer. That's the part that I'm convinced won't work. People want a bargain, but they typically don't want to pay a middle man to get a bargain. The merchants on the other hand, obviously will and have.

[Watchdog]

Thank you Steve for your feedback and opinions, they are appreciated.

[Watchdog]

I like the idea- will all coupons be 1shoppass credit? or will some be more?

my only advice, change the 3 pictures on your website to better quality pictures


People want a bargain, but they typically don't want to pay a middle man to get a bargain.

I added the necessary code on dev.shoppass(dot)com to actually show the credits necessary to get the ShopPass coupon. We did include it to be there but through another source the feed back was quite different then here and one of the concerns was "keep it simple" and just give a button so that members can easily get the coupon and remove the language that might cause them to pause?

As I explained we have a default set to 1 credit but the option to charge more then one credit per deal on an individual deal basis. With that said we also have the option to not charge any credits per deal on an individual deal basis so that registered ShopPass users can just save the coupon...This setting can not be made by businesses that have an account and decide to DIY which is only featured on "All Live Deals" . If there is any changes per deal on the amount of credits that would be a negotiated area and only on the "Today's Deal". This is also one that would get sent out in the daily newsletter to subscribers automatically at midnight or near there depending on the server load where we would have the cron set to space the emails sent.

With credits being set to zero my question would be then As a business owner would you be willing to pay for this?

We are definitely in the position that allows us to use these zero credit settings as a way to help promote our service too - but the cost per coupon also lets us pay those that are out there putting your deals together.

This is great dialog, thank you very much!

[Steve B]

How much does the consumer pay for 1 credit?

[Watchdog]

How much does the consumer pay for 1 credit?

For the most part this has been undecided and in discussions and brain storming what would be a fair cost that members would be willing to pay and we would make a profit.

We are able to create ShopPass credit packages - We also have a built in "rewards" system (currently off, but available) that is triggered by how many coupons a member purchases. How that work(s) is once a member purchase their 5 coupon they would get 2 free credits and it would show up in the "My Coupon Credits" list as reward credits and when they were rewarded. That is currently turned off and we'll have to see how the incoming revenue and the site cost weighs out, but we wanted that feature in place as a marketing option.
We also have a refund system, that if the credits were spent but the tipping point didn't make it (required coupons, todays deal only) everyone who spent a credit would automatically see the refunded credit in their account.

We also have tried the "get x amount of free credits" on sign up and that works well (also turned off) but there is little way to avoid fraud and users from registering for only the fee credits. We will for the most part have to pay someone their commission from each credit.

Our packages we considered was 25 cents a credit - a hard number to split that up for commissions.

Right now we're considering 3 packages

1 - 6 credits for $5.00 or 83 cents per credit - after the bank transaction fee of .45 cents that package will generate $4.55 per package or 76 cents per credit.

2 - 13 credits for $10.00 or 76 cents per credit - after the bank transaction fees of .59 that package will generate about $9.41 per package or 73 cents per credit.

3 - 1 credit for $1.00 with bank transaction fees of .33 cents would generate .67

Once the user uses a credit(s) to make a purchase of a coupon/deal we have no way of knowing what that credit actually cost that one individual and this is what we need to base our commissions on and why we would pay x amount of money per credit and that may just be .40 per credit but we have yet to decide.


Not that we're going this route but we want the service to be flexible - The credit system also leaves the door open for us to charge for the whole deal if we need to grow it that way or when we gain the trust of the consumers and businesses.

Here's an example
5 ShopPass credits gets you $14 worth of great food. | Dev.ShopPass (http://www.dev.shoppass.com/index.php/frontend/campaigns/single/18/5-ShopPass-credits-gets-you-14-worth-of-great-food)

We can always come down in price, but it's hard to say it's going to now cost you more.

Thank you for asking Steve, I hope this answer your questions.

[Watchdog]

I'd be worried that people wouldn't want to spend money (credits) on a coupon when they can get them for free from the other sites (Groupon, Living Social, Amazon Local, etc.).

Thank you for the time you all took to share your thoughts. Please continue to share your opinions.

Like I have mentioned the system we have is very flexible - we didn't want to be stuck in one mode and a lot of thought was put into that.
Not to bump the post as it's obvious some are for it and some not we are considering the two options of the service we're setting out there for coupon distribution.

Paid service with full support - Free service with limited support.

Separate the deals status -

All Live Deals - free to verified businesses,

No charge for the coupons to be distributed.
ShopPass members can save them at no cost to them. (no credits)
No feature such as required deals. (tipping point)
No Newsletters sent out.
Your City Area only from top city search list, not included in search directory. Search Directory Available for an Extra charge .
About your business is completed on our end upon verification.
May consider a one time setup charge to avoid a million sign ups that may not ever use the service. The jury's out still on this :)
Not available for online stores, must be local established businesses.


Todays Deal - Negotiated and managed by ShopPass

May Negotiate charges for the coupons to be distributed. Could be one Flatrate to business or pay per coupon by member or percentage of deals.
Newsletter sent out to all members in the area.
Smaller time slots for deals to run
Can use the tipping point that requires all a certain amount of coupons distributed to make the deal good to go.
When deal is completed we'll deliver a file with of all coupons distributed.
Professional Copyright of Deal
Remembered in "Past Deals"
included in directory search and city search list



Again, your opinions are welcomed and we also can set up some businesses on the development site for you to help test it and give us more real user experience.

Thank you and have a great day!

[ReganP]

Ok, so people buy credits and then they use these credits to basically reserve a deal? Then when they decide they want to use this deal they use enough credits to purchase it?

I do understand the value of this because I'm sometimes on the fence about whether or not I'll end up using a deal, but these deals from the major sites usually don't expire for a couple of days and I'm not sure how long people will be saving these deals. I just don't know if people will save like 20 deals and then over 6 months remember to use the ones they've reserved, that is unless they are the extreme couponer type to begin with.

I'm not saying it won't work, I just know that most people who are interested in these deals already subscribe to the major social coupon sites, so you'll have to really make sure that you are offering better deals than those sites. For example, I hate how Groupon is constantly offering Lasik, teeth whitenting, and laser hair removal day in and day out. So you will have to make sure to get really good local businesses and make sure to always be attracting people in different industries so that you aren't always offering coupons to sandwich shops and oil change shops every day.

A lot of this will also depend on how much people in your area care about supporting local businesses. In areas where people are really into it, this could work really well as your business will be local and you will probably have a better relationship with local businesses who aren't on Groupon and Living Social.

[Watchdog]

Thank you ReganP,

Good points. Every deal not only can be saved, but is also emailed for print. This can be tucked into their coupon caddy or how ever they save their coupons. One can also get the coupon at the last minute from their smart phone. So we have covered the distribution for the most part.

I think not that they have to be better in deal itself but a better variety of everyday things we might expect.