My take on groupon different than the make no money room

rick imby

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To clear up on my earlier post yes it is a sit down pizza all you can eat. Yes 30% of the coupon users chose a water glass (free) instead of buying a Soda which is $1.50 for a bottomless glass (so to speak) Free refills.

We have a lot of quarter games also (Air hockey, pinball, etc) which are doing real well with this promotion. We have definitely seen an uptick in the game revenue percentage of overall revenue. The overall revenue does count all the free eaters as payers. The manager's bonus is not affected by the coupons we run.

Actual revenue is well ahead of last year same month (if we take out all groupon revenue) which is interesting also. We have been nearly flat for the last 4 months.

It is the future revenue that we hope will continue with an upswing.

A lot of people seem to think a restaurant has it easy. We run the same knife edge of profitability. Labor and food costs are only partially controllable. We are open and paying employees even when we are slow, unlike most of you who are able to pay your employees on how much work they actually produce.

We are up against the marketing budgets of McDonalds, Wendys Pizza Hut. They make Stanley Steamer look like pikers.
 

Ken Snow

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Brian R said:
[quote="Doug Cox":2ga1ox30]The Non- answer from Brian or Greg Coles speaks volumes.


What question?[/quote:2ga1ox30]


Ditto- I missed a question too, all I saw were attacks, which in the Junior High mentality of MB'rs seems to be SOP (that I am sometimes guilty of myself).
 

rick imby

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The question for me was how many customers at my Pizza restaurant normally go for water, I am not sure. When I was writing earlier I wanted to compare but I am in Arizona and I cannot get to the numbers so I have to say I do not know. My gut feeling is about the same. I haven't asked the bookeeper to track that, I did ask her to track upsells on the groupon ad.

I am sure Greg Cole answered the redo question before when he first got on the board as did Ken Snow. As I recall GC said his techs lose their payment for redos.

But here is a question for Brian, and Ken,

What is the historical redo percentage with your business? The redo is redoing a problem job to make the custy happy? I would guess you track that and track it by tech.

Rick
 

Doug Cox

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Ok Ken- So now when I voice my disagreement with someones statement, it is considered an attack. I asked Brian and Greg Cole what their rate of callbacks (per quarter) with subpar results were. I assumed they would have almost an almost zero callback rate like me if they were doing the same quality work as me.
 

Ken Snow

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Sorry Doug I missed that qyestion and even went back a page. If you asked it I appologise. I also think you are not correct about the callback rate. I believe an OO will automatically get less call backs if the work is the same due to the uncomfortableness of calling back when you know you are going to be talking to the person and seeing agai9n the person who did the work. Much easier to call back to a call center.

As for us we do have the data and we actually call it a satisfaction rate vs the negative callback rate. Our top guys (who very logically also bring in the most revenue) are in the 97.8-98.8 range and our lowest ones are in the 96.5 to 97.0 range. The middle group is 97.1-97.5 ish.

Ken
 

Doug Cox

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I'm sorry Ken but I actually have alot of people I deal with that have had SS, or ServPro (my Area) clean carpets for them and they fail to call them when they are displeased. I just don't get this. I encourage all customers to call me if they have ANY ISSUES with my service. I would much rather deal with it up front than to have them ripping me behind my back. I realize when you are dealing with employees that you are going to have callbacks, but don't claim to say there is no difference in carpet cleanings like Greg Cole.
 

Brian R

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Once a sub learns hows I like things there are very few call backs but I will admit that it ebbs and flows. No, I don't track it like I do other aspects of the business.

Trust me, I know when it gets out of hand. The buck stops here.


I've been blessed with very few upset customers. I tell these guys to suck their ass until the blood flows....attitude and info are the two biggest parts of a redo.

If a sub does the work and gets a redo...they go back out there for no extra money. If they don't go or the customer isn't satisfied...neither one of us get paid because I return the money...maybe 2 times in the last year.

If he refuses and another sub covers or now I can cover...he doesn't get paid.

They know this going in and therefore do a great job to begin with and make sure the customer is satisfied....nobody likes to go back out.

This is one of my biggest reasons for paying % instead of hourly.
 

Greg Cole

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Brian R said:
This is one of my biggest reasons for paying % instead of hourly.

You just punctured the litmus test for the IRS and Workers Comp.
Brian- some friendly advice from the guy that knows the IRS auditors by their first names. DELETE the post you wrote-
You pay a percentage of the job because they are a contractor and NOT an employee. Hourly wages = employee/employer relationship.
 

Brian R

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gregcole said:
Brian R said:
This is one of my biggest reasons for paying % instead of hourly.

You just punctured the litmus test for the IRS and Workers Comp.
Brian- some friendly advice from the guy that knows the IRS auditors by their first names. DELETE the post you wrote-
You pay a percentage of the job because they are a contractor and NOT an employee. Hourly wages = employee/employer relationship.


I was using that out of context for the % versus hourly discussion.

I've had employees in the past. But of course the Subs are a different story.
 

Whomeam

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I really find it funny that someone with the website 25dollarsaroom.com with starting prices at $45 is accusing someone else of a bait and switch. Come on bro, let's be a little realistic here.

And having personally been on jobs with Brian and see how he works, I can honestly say that I have NEVER seen him try to pressure a customer into buying unneeded services. I've seen him explain what other services he has and how they would benefit from it, but there was never any pressure in anything he ever did. Brian is easily the most professional person I have ever met and would never compromise his businesses integrity by doing something like that. You may just want to know all the facts before you call someone a bait and switcher.
 

Greg Cole

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Brian R said:
gregcole said:
[quote="Brian R":35n8qjch]
This is one of my biggest reasons for paying % instead of hourly.

You just punctured the litmus test for the IRS and Workers Comp.
Brian- some friendly advice from the guy that knows the IRS auditors by their first names. DELETE the post you wrote-
You pay a percentage of the job because they are a contractor and NOT an employee. Hourly wages = employee/employer relationship.


I was using that out of context for the % versus hourly discussion.

I've had employees in the past. But of course the Subs are a different story.[/quote:35n8qjch]

Cool- just wanted you to be careful. somewhat amus
 
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