Groupon, Living Social, And Yelp Gone Bad!

[Brian R]

Vivers...What numbers? If you didn't run a Groupon you don't really know.

Only what you THINK happens.

It's all about the bottom line fellas.

I posted my real numbers here on Mikey's somewhere. They didn't make me millions for sure....It's a building process.

I did most of the work myself, didn't try to rape anyone and still did well....Especially for the time and effort involved.


Remember, if you're doing your research via Google...You might as well be reading a bathroom wall.

Some poor slob in his mother's basement is mad because he didn't do well with Groupon and isn't willing to admit it was his lack of attention to detail and ambition that made him lose...NOT Groupon.

It's an advertising expense.....How much time did you spend walking and doing door hangers Keith? How much do we spend on ads elsewhere that do hardly anything? How much time do we spend in Network Groups or waiting for repeats?

Again, it's all about your bottom line. Either you can make it work....Or you can't.

 

[Steve Manier]

Remember, if you're doing your research via Google...You might as well be reading a bathroom wall.

Some poor slob in his mother's basement is mad because he didn't do well with Groupon and isn't willing to admit it was his lack of attention to detail and ambition that made him lose...NOT Groupon.



Hope you're not refering to me....I'm not desperate enough to to use these slime balls to get business. My thoughts are if you have to stoop to this level to make it in the cleaning business, you might as well start MLM marketing! :mrgreen:

 

[Brian R]

I wasn't referring to anyone in general..... Just in general.


These are the same guys who will take out a yellow page ad and let the Rep set if up for them...Then wonder why it didn't work...Then complain about it.
At least they're smart enough to complain before wasting their money..This time.


It's seldom the advertiser.....It's usually the ad.

 

[Steve Manier]

I'm sorry Brian...I just wanted to get in on the dog pile LOL. You seem like a good guy! shiteatinggrin

 

[Brian R]

I'm sorry Brian...I just wanted to get in on the dog pile LOL. You seem like a good guy! shiteatinggrin

It's cool man. Good to have you around. 8)

 

[Bee Busy]

BTW...I hope u guys didn't think I was calling u guys that use this type of "marketing" dirtbags...I think it's dirtbag marketing..everyone is entitled to run their biz however they want...but I feel this stuff is ruining the carpet cleaning industry, it's lowball pricing to get into the door and upselling to try and break even...for u guys that do this...do u inform your customers that Groupon/LS is already taking 50% and u have to make up for that by upselling? Probably not, because they would throw u out of the house, so u either upsell or u take it in the pooper

 

[Brian R]

Really, if I don't upsell... I still make a couple bucks on the deals I run because my overhead is so low.

I think it can add credibility to carpet cleaning company because people will trust the bigger name (groupon) to check out the smaller company (mine)...Which they do somewhat...But not really.

It's fun for some of the buyers to purchase the vouchers....IMO. It's a new way of shopping and the female homeowner loves it. You'll see that most of what is offered is targeted towards our demographic.

They know it's a killer deal on the service...They understand for the most part that it's just a good faith deal and almost always expect to purchase something else.

I guess it's hard to explain/understand unless you've done a few of the deals. I really paid attention.


Not too many dirt bag price shoppers are going to buy a deal in the moment like Groupon....They are generally event cleanings people....I think we all know that.....Moving out, health department called etc. lol


Again, if I have to explain it.... You probably won't understand it.



Example: If you clean an 8 room house with a staircase..... you probably wouldn't mind charging a little less for the last 3 smaller bedrooms right? As long as the rest of the house is full price?

This is the same idea....Groupon just offers that discount upfront.

 

[Able 1]

It's an advertising expense.....

How much time did you spend walking and doing door hangers Keith? I don't do "door hangers" I do flyers... I pay about 3 cents a copy(full gloss, made by Wayne Miller),and can hand out 2,500 in 8 hours, I hand out around 30,000 a year(now). So for 96 hours out of the year I sit in my car and stuff boxes to get FULLprice for the work I do and I could still up-sell if I wanted to. I really only need to work half the hours to make the same as poopon minus the 96hrs.


How much do we spend on ads elsewhere that do hardly anything? How much time do we spend in Network Groups or waiting for repeats?Absolutely none zip, zilch, nada...

 

[Vivers]

Brian,
I don't doubt people will get extra work done but, for me it's just to far back doing 3 areas for $49 or whatever ridiculous deal they wanted me to run. Then, they only give you half of that!

I literally laughed at the rep on the phone. Also, those prices being advertised to the public is terrible IMO for our industry that we all are trying to get top dollar for our professional services that we offer. As we should. Really continues to make our industry look cheap and fly by night.

No wonder people think they can rent rug doctors or purchase store bought uprights and do it themselves just as well as us!

I believe we as a PROFESSIONALS should not ever use this type of marketing and all of us should command top dollar for our quality workmanship and unsurpassed customer service.

But sadly, this kind of marketing will always be around, just like bait & switch low lifes!

 

[Brian R]

It's a "Deal" site. Hense the reason for the incredibly good deal.

If they know they are getting a deal...Then they know the normal prices are going to be higher.

If anything it tells the 60% of the public that never thinks about carpet cleaning...To get their carpet cleaned.


I do 3 rooms $65. Yes, I tell them Groupon takes half for the advertising expense.

I think the perception is worse than the reality. I don't want to do 3 rooms for $32.50 either. But my mindset gets me to offer more when I get there.

I also offer other services not related to carpet cleaning....So maybe I have more to offer bringing up my averages.


Either way, I don't mind guys NOT doing the deals. But I have to give my side of the story for anyone on the fence trying to decide...So they get both sides of the story.


Good luck to you.

 

[Bob Foster]

I think if you asked those in our industry that have tried Groupon if they would do it again most would say no.

The remarks about Groupon seem more discouraging than encouraging from many types of businesses that have used them.

http://www.businessinsider.com/groupon- ... lts-2011-7

 

[Brian R]

It does take a certain kind of person.

 

[pasadena]

I get sales calls from yelp all the time since I registered my business with them.

 

[randy]

The way I see it to make groupon work you need to do it in the off season when you have down time. Running a groupon during the peak season is crazy. Same thing with running specials or coupons during the busy season, crazy. Why sell at a cut rate when you don't have to ?

I can see spending the off season with groupon marketing but April-December ? No way.

The people that pay the least BITCH & complain the most. Ask any manager at Golden Corral, Taco Bell, or McDonald's that has previously worked in a more upscale establishment. The Walmart crowd's expectations can be off the charts for what they are paying.

 

[Brian R]

You're right Randy. The one's who pay the least complain the most.


When I run a deal, I leave space for my regular jobs. I generally run them when slow or building an area.


That's another great part about Groupon.... You can schedule the jobs as far out as you need to.

"Appointments are subject to availability."

 

[Connor]

What do you expect, errbody tryn ta give a discount, if it ain't carpet cleanin', it's discounts on yo' mobile phones.

Just remember that you gotta pay fo convenience. Prompt service costs mo'. Lighting ain't cheap.

 

[kingjoelking]

I have just run my second Living Social ad. I made sure that it was higher priced and wouldnt sell 400 $50 jobs. It is the best advertising money I have ever spent. 80% of the jobs have been in upper middle class neighbor hoods. about 15% were in $1,000,000 plus neighborhoods and only about 5% of them were in lower middle class neighbor hoods. Did not clean a single rathole.

Many customers commented on having a previous bad experience with carpet cleaners and tile cleaners, And felt that by purchasing through Living Social that we were "Pre Screened" and therefore more reliable.

These jobs for the most part were some of the best prepared customers and nicest customers that I have dealt with in 4 years. It was like they appreciated that they were getting a great deal and wanted to make sure that the job was as easy as possible.

The ad was Great exposure, with my fully wrapped van. Sold 46 jobs through living social, picked up about 12 jobs because of the ad that got the same deal just booked directly through us. Probably picked up another 10 or 12 jobs from referrals and neighbors. I had the best January that I have had since I started my business back in July of 07. Living Social is A Ok in my book.

 

[Shane Deubell]

I have just run my second Living Social ad. I made sure that it was higher priced and wouldnt sell 400 $50 jobs. It is the best advertising money I have ever spent. 80% of the jobs have been in upper middle class neighbor hoods. about 15% were in $1,000,000 plus neighborhoods and only about 5% of them were in lower middle class neighbor hoods. Did not clean a single rathole.

Many customers commented on having a previous bad experience with carpet cleaners and tile cleaners, And felt that by purchasing through Living Social that we were "Pre Screened" and therefore more reliable.

These jobs for the most part were some of the best prepared customers and nicest customers that I have dealt with in 4 years. It was like they appreciated that they were getting a great deal and wanted to make sure that the job was as easy as possible.

The ad was Great exposure, with my fully wrapped van. Sold 46 jobs through living social, picked up about 12 jobs because of the ad that got the same deal just booked directly through us. Probably picked up another 10 or 12 jobs from referrals and neighbors. I had the best January that I have had since I started my business back in July of 07. Living Social is A Ok in my book.

Dont screw around joel what was the total revenue then and total cost?

 

[davendana]

8) ....eating popcorn......

 

[davendana]

Got this off another post....kind of opens your eyes if you're honest with the numbers and don't fudge them
http://cleanwiki.com/resources/Manageme ... 0Costs.xls

 

[Bee Busy]

it's funny how the minuses (taxes...gas...chemicals...phone and time) are never discussed during these groupon/livingsocial threads

 

[davendana]

Yeah after I ran the numbers I was like :shock: :shock: :shock: :shock: (I didn't do a daily deal thing, this was before) HP says it best...KNOW YOUR NUMBERS

 

[kingjoelking]

I have just run my second Living Social ad. I made sure that it was higher priced and wouldnt sell 400 $50 jobs. It is the best advertising money I have ever spent. 80% of the jobs have been in upper middle class neighbor hoods. about 15% were in $1,000,000 plus neighborhoods and only about 5% of them were in lower middle class neighbor hoods. Did not clean a single rathole.

Many customers commented on having a previous bad experience with carpet cleaners and tile cleaners, And felt that by purchasing through Living Social that we were "Pre Screened" and therefore more reliable.

These jobs for the most part were some of the best prepared customers and nicest customers that I have dealt with in 4 years. It was like they appreciated that they were getting a great deal and wanted to make sure that the job was as easy as possible.

The ad was Great exposure, with my fully wrapped van. Sold 46 jobs through living social, picked up about 12 jobs because of the ad that got the same deal just booked directly through us. Probably picked up another 10 or 12 jobs from referrals and neighbors. I had the best January that I have had since I started my business back in July of 07. Living Social is A Ok in my book.

Dont screw around joel what was the total revenue then and total cost?

I gave a more complete answer to this over on a different forum and you didnt want to except the #'s. So dont.

I am just letting people know it can work with a good game plan. But I am not twisting youre arm or anyone elses to use Living Social. It worked for me, I am happy with the results. I would suggest that the deal you offer be on the higher priced side. My deal was for $149 or $199.

Anybody can pay $50 for 3 rooms. That makes the deal good enough that the slums will even buy it, if they even thought that they might rent the rug doctor. Cuz now they wont have to do the work themselves. Bad plan to succeed in my opinion, but at my price point the impulse buyer is a much higher income class.

 

[davendana]

!dork! Intermission........

 

[Art Kelley]

I have heard of a local guy that sold around 500 of these "deals" a few months ago, got the money, and decided to quit the business! :shock:

That could actually work. 500 @ $24.50 you could net over $10000 after your moving costs. Just travel to different metro markets and do it again and again.

 

[Brian R]

The lowest one I did was $55 for 3 rooms with restrictions.

I'll admit, you need to do a higher priced deal to attract better customers.

Even at the $65 mark I brought in a better grade of custmers.

BUT, you do need to leave room for the upsell...If you offer too much in your deal, you may not have anywhere to go.

I like the 3 room deals because there is almost always more rooms.

I did a whole house deal (small) and it worked well....But the 3 room deals still worked better.



Like said.... You definetely need to know your numbers before going in. I knew the biggest loss I would make on a job was making $10......That's after all expenses.

NO, I didn't want to just make $10 per job...That was just the worst case scenerio.

Most jobs had something more done......Or at least would give a tip etc.

There were a few that didn't. But I educated them as to why I was cleaning for such a low price. Some got it, some didn't...Some didn't care.

Such is business

 

[Bee Busy]

that's so depressing knowing that you might only make $10 on a job...it sounds like a form of gambling where u will break even at worst and will make a few bucks if you play 1000 times and get all stressed out and tired :roll:

 

[Brian R]

that's so depressing knowing that you might only make $10 on a job...it sounds like a form of gambling where u will break even at worst and will make a few bucks if you play 1000 times and get all stressed out and tired :roll:

How did I know someone would focus on that? lol

Business is gambling..... You just have better odds on some things than others.


Bigger the risk, bigger the reward.... Almost always.


A bigger gamble.... Or a "not so smart" gamble..... Is betting someone will click on a pay per click ad AND then call you....Maybe they'll call... Maybe they won't.....Maybe they are just clicking to cost you money?


So even though there is a bit of a risk.....It's still a pretty safe bet that you'll get money from that customer. You just control the odds.

 

[sam miller]

I was at a house last month doing 2 rooms and a neighbor came over and said how much do You charge?

I said $30.00 per room! He went home told his Mom and she came over with the PS and pointed to 5 companies charging $14.95 per room and said how could I charge so much when everyone else charges so little?

I said This is what I do for what I charge and The 5 or so Low ball companies in the PS wasnt everybody!

Just bottom feeders trying to get established!

They went with me and were pleased.

Who cares what your competition does? Just do what You do well!

People know they get what they pay for!

 

[Brian R]

I concur