I've talked with many people about Groupon. The key is in how you present it, and the limitations that Groupon will agree with. Suppose you only make it valid for the month(30 days) and do this regularly to fill in work like Greg does.
Groupon attracts the impulse buyer who purchases based on the perceived savings, and or low price. However many don't read the conditions of the deal, and do not book the job in time for it to be valid, and they lose out.
Based on numbers I've heard from others anywhere from 20-35% ( in this case 200-350) of people who purchase forget or don't even call to book the job within the time limit. Worse case scenario that is $3000.00 or a little over $5200 best case in unclaimed groupon deals for Greg after their cut.
And how much good will do you expect that math game to build. True, it ain't his fault. Yet most people will feel resentful and associate the company's name with something negative.
What money figure would you put on that?
Since Greg is a numbers guy he has to know how many jobs per month get up-sales on average. Add protector, 'pet package', or touch panels on a synthetic piece of upholstery, job ticket increases to $100.00 easily. For easy numbers we'll guess 40-50% (400-500) of the 65-80%(650-800) of people remaining that do actually claim the offer get up-sold with an average ticket of $100.00 when its all said and done. So that is 40-50k in CASH FLOW in 30 days. The remaining 25-30% (250-300) will actually stick to their guns and make them do just the deal. Based on 40 contractors that means worse case each contractor will have 7-8 jobs(one or two a week) in that month that will be filler work at the groupon deal. Breaking that down even further if each contractor hits 4 jobs a day at 5 days a week. 18-19 jobs in a week are still good money makers for them.
How much trust and good will will that build? How many clients did people here get from people that got tired of or burned by that game?
I get quite a few and by the time I get them, they are not price shoppers any longer. They've been converted for me by the above.
Though, in all fairness, some price shoppers will always be price shoppers. And according to Greg, his subs offer 'knock your socks off' service.
Well........... I'd be damned.
As Greg mentioned with smart routing the sting of that could be easily minimized or non-existent, but with a large operation incoming cash flow like this really affects your bottom line.
No argument there. Efficiency can save and make, lots of money. And Greg is a sharp guy, so I am not doubting his business acumen. I am sure he knows exactly what he's doing.
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