Local businesses featured on groupon - want an owner's perspective! (sales, coupons)

[MsAli]

Hello all,

I am a small business owner and want to hear from other local business owners that have been featured on Groupon!

What was the process about? Likes, dislikes, do it again???

Thanks bunches!

[CHTransplant]

There was a recent news article that had some discussion of Groupon in connection with Google's planned acquisition that you might find of interest. A snippet from that article follows:

The company works by letting advertisers direct discount deals to consumers, mostly via email. The advertiser typically gives 50 percent off the retail price of his product or service. Most deals are only valid if a certain minimum number of people accept them. Then, once a deal is completed, Groupon itself keeps half the purchase price. That leaves the merchant with a mere 25 percent of the list price of his product or service.

Groupon is talked about as an effective way to reach new customers and promote a business. It surely is. But there are plenty of other good ways to do that in today’s Internet marketplace, and Groupon is by no means the best.

I would ask any Groupon merchant whether, before he considers offering such a huge discount, he has considered, for example, running a targeted ad on Facebook that features a discount, albeit a lower one. Advertisers there rarely offer discounts, but there is no reason they shouldn’t work. Facebook enables a merchant to target ads to people in a certain geographic area, of a specific age, or using a vast range of other specific parameters. My gut experience, and I’ve talked to many, many Facebook advertisers, is that a discount offer of 30 percent for almost anything would yield a dramatic response in Facebook environment. And whereas Groupon spam-emails its members without much targeting other than by geography, on Facebook a merchant can target to those it really believes most likely to be its long-term customers.

Google's Groupon Bid Signals Desperation, Loss Of Confidence

[cry884]

I love Groupon and would highly suggest it. I've had 99% good experiences with both groupon and living social. My one exception is a service-based deal where they sold more than they could handle. If you're a photographer, a house cleaner, landscaper, etc., I'd suggest capping your sales to what you can realistically handle in a short period of time. Otherwise, you'll have irritated customers asking Groupon for refunds because you're overbooked. Other than that, go for it!

[toot68]

Interesting article on Groupon. Apparently under 50% of people purchasing a groupon actually use it. So even many merchants come out ahead after giving the 50% cut of sales to Groupon, and also get the money collected by groupon up front (rather than when the customer comes in). After seeing this thread, I wondered why any business would use it, now I guess I have an idea.

Groupon, Google, and value on the Internet : The New Yorker

[topchief1]

Originally Posted by toot68

Interesting article on Groupon. Apparently under 50% of people purchasing a groupon actually use it. So even many merchants come out ahead after giving the 50% cut of sales to Groupon, and also get the money collected by groupon up front (rather than when the customer comes in). After seeing this thread, I wondered why any business would use it, now I guess I have an idea.

Groupon, Google, and value on the Internet : The New Yorker

That's why I've been wary about Groupon, I haven't purchased anything unless I know I'm going to 100% without a doubt use it. There seems to be the buying a deal for the sake of a deal mentality with Groupon.

[MsAli]

Thanks for the info everyone.

I'm new to the area and I figured this would be a good way to announce my business and gain some longterm clients. I agree with service type businesses being careful to be able to handle the influx.

I've met with a LivingSocial Acct Exec and decided to go that route. Their agreement is different than Groupon.

Looking forward to it. I'll report back my experience once my business is featured....

If you don't hear from me for awhile, you'll know why. lol

[wheelsup]

I haven't ever heard of "Living Social" but we buy from Goupon all the time. Lots of new businesses get our business. The better ones we go back to, some we don't like at all. It's particularly nice when a restaurant does it as we don't like to take chances on meals with how expensive they can be.

I'm not a huge Facebook user either, pretty much any ad on there I have come to ignore. Groupon to me is like the modern day Valpack. Also in order to properly use Facebook you must have some sort of following and the folks you are trying to reach out to won't be a "friend" because they won't even know you exist. Thus the power of Groupon. Personally I think that "article" snippet wasn't very well written and whomever wrote it really understated the value of Groupon to reach new audiences. Facebook is great if you have an established following and business, but if not?

[frankpc]

Interesting thread ..

Surprised the Groupon non use rate is 50%, but must admit that my Goodberry's groupon that expires 12/31 is in danger of lapsing .,.. sure sounded good when I bought it.

Besides Groupon and Living Social, the Zspotlight folks also have a similar program now. They've offered half off deals at their website for local restaurants for a few years now and have added email deals too.

Frank

[adlnc07]

I notice that Twongo no longer sends out reminders for expiring coupons. I let one lapse this month myself because I didn't get around to scheduling an appointment - I'll definitely be more careful which ones I buy in the future!

[mcbeth01]

I have been using groupon, twongo and living social pretty actively. Recently got a $50 at Nordstorm Rock for $15, and $30 at redenvelope for $15. Used both, and then when Groupon offered the redenvelope deal again, i got it again. Great way to get presents this time of the year...