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I know that Groupon is all the rage right now. But if you dive into their business model, it is not a pretty picture for local Rochester merchants...
Example: I run a local Day Spa on Park Ave. I need more customers. So I run a Groupon that offers a $100 massage for $50. This gives 50% to my customers and I gain new business as a result.
Problem: Groupon actually keeps $25 of the $50 collected from this offer as their "service fee". That $25 funnels to Wall Street in the form of Earnings Per Share and our local Day Spa on Park Ave actually has a 75% off offer on their books.
Wouldn't a locally-run group-based coupon site be WAY better? Especially if it let the merchants run their ads at no cost? Groupon is essentially a website and email notification, with a little social media mixed in. Not too hard to build...
Anything that doesn't feed Wall St and the insanely greedy a-holes that take advantage of every other American in the country is a plus in my book. I personally don't use Groupon or any of those "offers", but I like the idea of keeping the money local, which I'm assuming might lead to even better deals.
Deal Chicken is own by Gannet (I believe) and is used all over the country. I believe the rates to be just as bad as newspapers are struggling for revenue any way they can. After all, Groupon (and the Internet) stole the revenue from them in the first place LOL.
GetMyPerks, again, a nationwide play. You can see their list of cities on the home page.
The more I dig into this, the more I feel that Rochester needs to do something to help their local merchants and stop sending the money out of the city.... I hate when I get ideas like this stuck in my head...
I know the merchants would LOVE this idea as it would save them money. But would the consumer really care? Would they give up Groupon to show home-town pride?
Deal Chicken is own by Gannet (I believe) and is used all over the country. I believe the rates to be just as bad as newspapers are struggling for revenue any way they can. After all, Groupon (and the Internet) stole the revenue from them in the first place LOL.
GetMyPerks, again, a nationwide play. You can see their list of cities on the home page.
The more I dig into this, the more I feel that Rochester needs to do something to help their local merchants and stop sending the money out of the city.... I hate when I get ideas like this stuck in my head...
I know the merchants would LOVE this idea as it would save them money. But would the consumer really care? Would they give up Groupon to show home-town pride?
Other than home town pride, what would be "in it" for the consumer? I think that's the hook you'd need to figure out. We try to eat at local joints and patronize local merchants when we can though other than eateries that isn't much left that you can do local. There are a couple of somewhat independent Hardware Stores (Mayers), grocery stores (Hegedorns) and then services such as yours.
As an aside and speaking of eating local a buddy of mine and I are going to Nick Tahou's, on West Main, tonight (before 8 when they close now) for the first time. Never been. I've had trash plates, junkyard plates, Charlie Plates etc but never an authentic Garbage Plate.
Other than home town pride, what would be "in it" for the consumer? I think that's the hook you'd need to figure out. We try to eat at local joints and patronize local merchants when we can though other than eateries that isn't much left that you can do local. There are a couple of somewhat independent Hardware Stores (Mayers), grocery stores (Hegedorns) and then services such as yours.
As an aside and speaking of eating local a buddy of mine and I are going to Nick Tahou's, on West Main, tonight (before 8 when they close now) for the first time. Never been. I've had trash plates, junkyard plates, Charlie Plates etc but never an authentic Garbage Plate.
Quite right. Quite right. I don't really have a hook for the consumer other than the "shop local / keep the money local" notion... Although, if you could get enough merchant penetration, then the consumers would be there because there would be more deals... in theory... But that's a stretch.
The only other thought I had is that the merchants, again in theory, should be able to make the deals BETTER because they are not coughing up the money to Groupon HQ...
So - Who has another "hook" idea for the consumer side of this day-dream?
I like the idea. the hook might be exactly your take on it: keeping business local. you'd need to pitch it right, of course. i know someone who could help you with that if you want.
personally, i stopped using groupon, because after using it a few times, i had the distinct feeling that none of the deals were actually worth it: there was a catch, it was only good on certain items, it came with an annoying pitch, i had the feeling that staff didn't like me using it, or i simply didn't need the product, but I thought i did at the time.
i'd certainly use a Roc-On (you can have the name, i just made it up!), simply because i dig rochester, and i think it's a shame that all of the money goes out to those dreadful malls instead of keeping a vibrant downtown, well, vibrant.
Interestly enough, I have quite a bit of experience with these type of deal sites, I actually currently work for one. The only way these can really work for the merchants is if the aggressive deal they put forward is followed up with some type of loyalty incentive program. Otherwise, they get the coupon chasers, or their already loyal customers snag a good deal. If you want to take the conversation offline, feel free to email me at 5lilguys@gmail.com
I have thought about starting something like this, and you're right, if the revenues and taxes are going back to the local area as well as possibly supporting local schools, etc...it can be a real win-win-win.
I know that Groupon is all the rage right now. But if you dive into their business model, it is not a pretty picture for local Rochester merchants...
Example: I run a local Day Spa on Park Ave. I need more customers. So I run a Groupon that offers a $100 massage for $50. This gives 50% to my customers and I gain new business as a result.
Problem: Groupon actually keeps $25 of the $50 collected from this offer as their "service fee". That $25 funnels to Wall Street in the form of Earnings Per Share and our local Day Spa on Park Ave actually has a 75% off offer on their books.
Wouldn't a locally-run group-based coupon site be WAY better? Especially if it let the merchants run their ads at no cost? Groupon is essentially a website and email notification, with a little social media mixed in. Not too hard to build...
Feedback?
groupon sux imo ..soon to be a penny stock they say..
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