Royal Man
Member
smastio said:
Summary of study:
http://www.media.rice.edu/media/NewsBot ... W&ID=14811
PDF of study:
http://www.ruf.rice.edu/~dholakia/Group ... 202010.pdf
Groupon...One of my competitors
- Thread starter Brian R
- Start date
Summary of study:
http://www.media.rice.edu/media/NewsBot ... W&ID=14811
PDF of study:
http://www.ruf.rice.edu/~dholakia/Group ... 202010.pdf
smastio
Member
Dave Yoakum said:
Thanks Dave - I had already made a video of that study, but did not have the Full PDF. Good to have. thanks. Here's the link.... http://www.screencast.com/t/7BKs8heNBxXs
Brian R
Member
Ace said:
Lol, that's almost what I am doing....except for the bait and switch part. I am getting all the work through Groupon and getting all the work done with myself and others.
If I buy the groupon and send the company to do one of my 4 room jobs that would normally be $120.00 minimum...I could stand to make $70.00 per instead of my normal $60.00......now if they will split the upsells with me....You may have something there. lol
Bundy said:
You're paying for jobs that may or may not be there.
Groupon.....They send you jobs BEFORE you "pay".
Brian R
Member
The numbers can be twisted either way.
I'm not saying that's what you're doing...but if I say....
I an sit here and send my subs out to do the job and make $10.00 per job before they walk in the door.......Groupon is paying me to do the job.
I can also say...when I do the job with all my expenses, I probably make the same amount before I walk in the door. But I make a bit more than that.
You can turn it either way.
If it's not coming directly out of my bank account and going to someone else...I'm not paying it.
I do understand that money from my bank account paid for the phones, Service Monster etc....I'm just keeping it simple
I'm not saying that's what you're doing...but if I say....
I an sit here and send my subs out to do the job and make $10.00 per job before they walk in the door.......Groupon is paying me to do the job.
I can also say...when I do the job with all my expenses, I probably make the same amount before I walk in the door. But I make a bit more than that.
You can turn it either way.
If it's not coming directly out of my bank account and going to someone else...I'm not paying it.
I do understand that money from my bank account paid for the phones, Service Monster etc....I'm just keeping it simple
Brian R
Member
FCC said:
I have to look at the Groupon deal as just one big job, repeats and everything.
The big jobs make up for the minimum jobs etc.
But I paid $6.25 on most accounts to get the repeats according to Service Monster.
Brian R
Member
By the way...they can pay the same price as last time....it's just 100% of it comes to us instead of less.
Brian R
Member
Bundy said:
Which deal...the lease deal with my sub?
I'll give %s but that's about it. It tends to get into the area of giving other's info out.
He will be paying me about 25% of what the entire company made last year.
It's broken down into endless recurring monthly payments that can go up a few % every year.
If he doesn't want to do it anymore, the company comes back to me.
Brian R
Member
FCC said:
No, my minimum here was supposed to be $90.00 but that didn't work out.
Jay D told me before I ever got to Dallas that the minimum for the area was about $65.00
He was right.
LisaWagnerCRS
Member
Brian R said:
Who's minimum? The city's? A region does not "set" your minimum, you do.
Is that what you're saying?
Lisa
Brian R
Member
FCC said:Ok...so what is the difference in this "whole house special" and the one on your site? Why would you have that price on your site if the market won't sustain it? Are you trying to scare away customers? or just hoping the few that accept that price makes up for the many............
That's not "my" site...it's a Mini Franchise and they set their own prices.
Brian R
Member
LisaWagnerCRS said:
I'm just saying that's what most people I've encountered feel they should pay. You're right, I do set my minimum...but I'm not throwing away jobs either.
Brian R
Member
Bundy said:
What are you trying to say?
We'll do the work for advertised prices.
Brian R
Member
Yes, that's what a Groupon is....half off or better....or at least usually.
Lee Stockwell
FOJL
I remember Bill Bane warning of the "Walmart effect" on PRODUCTS over twenty years ago, as manufacturers progressively cut corners and lowered costs to meet tighter price points. His warning has come to fruition as high quality producers in the USA have been displaced by lower quality imports.
He (perhaps wrongly) thought SERVICE businesses were almost immune to this corrosive effect because services "could not be mass-produced and stored in a warehouse".
Sadly the MMM, Groupon, and similar "price merchandisers" have started to gut the service businesses...with their greedy fearful acquiescense.
He (perhaps wrongly) thought SERVICE businesses were almost immune to this corrosive effect because services "could not be mass-produced and stored in a warehouse".
Sadly the MMM, Groupon, and similar "price merchandisers" have started to gut the service businesses...with their greedy fearful acquiescense.
I am just saying you have an ad for $79 for 3 areas nothing else. I could say plenty like your groupon ad is the same as your others so there is an FTD deception going on. Or I could just get 2 3 areas for $158 instead of your other deal for $199.
That wasn't my point it was that I saw your ad
That wasn't my point it was that I saw your ad
Brian R
Member
FCC said:
Isn't a coupon (groupon) lowering your price anyway?
Brian R
Member
Bundy said:
I may have an ad out for $79.00 but I'm not running a Groupon for that.
How is that fraud?
And you can't use 2 offers (Groupons) at the same time
LisaWagnerCRS
Member
Bundy said:
My take is this...
http://www.scribd.com/doc/35158272/CF-H ... er-clients
To sell something you need 3 things:
1) a product/service
2) a sales message
3) a message delivery system
People spend all their time on their "stuff" and the delivery (Groupon, ads, youtube, postcards, whatever) - and very little time on the "message" and WHO they are targeting as an "right fit" customer.
Low price offers on Groupon do work. You will get calls. Sometimes lots of them. And you will dig a big hole in costs to do that in time, labor, supplies and frustration. Especially frustration - because you will have people who chose you ONLY on price, so they will suspect a hard upsell coming, and they will be guarded. It will take you more to try to sell them. The difference between boxing Justin Bieber or Mike Tyson. Price offers bring you the tougher task (you could probably verbally knock out Bieber.)
People ask "how much" because price is all they know to ask. This is classic Piranha curriculum.
Education-based marketing shares with them what they didn't know about a product/service, and why it's important to them.
It filters out the ones who only care about price, and brings you the ones who care about other things.
And when you are in that house, and begin that client relationship based on YOU being the "expert" they trust - the sales process is smooth, no one feels pressured, and you create a high lifetime value of a client in repeat and referral business.
I think that biggest detriment to our industry is that too many who do the work devalue what they do. They don't think customers will pay good money for good work and service. They look at their business through their own eyes and say "I would not pay more than $75 for 3 rooms"... but you are NOT your customer. That's what the article lays out - the complete difference between companies based on low prices versus a higher priced service business experience.
Everyone could eat at McDonald's - but not everyone wants to. And they will pay for a better experience, and people love to give money to people they enjoy working with. It's the difference between a one-time cheap transaction like what we are talking about in this thread - and a lifetime client relationship, which is cultivated through marketing messages that focus on things other than "low price."
That's my take.
Lisa
Brian R
Member
Cantina Laredo sent me a text for free guacamole
I went there and spent $70.00
Nuff said.
I went there and spent $70.00
Nuff said.
LisaWagnerCRS
Member
Brian R said:
Seriously? Brian, please go get a little bit of marketing education. You don't even need to pay for it, the programs at http://www.ilovemarketing.com are free.
You are an existing client of CL - a relationship already in place. Give a little something to get them in, and of course they will buy more. Especially the perfect choice of guacamole - you need something to put it on. With restaurants especially on their slow days, it's a great reason to get someone in.
That's a savvy strategy, low cost, free to people you already value - and the reciprocity leads to immediate additional sales.
That is completely the opposite of Groupon - where you devalue the prices to strangers, who come in not caring if you are good or not, just that they got a screaming deal.
The marketing psychology is completely different, and so is the positioning.
Good marketing blogs to learn from besides Joe's ILM (I mention that because it has several cleaning related examples in the first episodes that are perfect for struggling cleaners) - but also Seth Godin (http://www.sethgodin.com) and John Carlton (http://www.john-carlton.com)
If you are going to be the moderator for "making more money" - you need to learn some more about marketing message to target market matches and creating win/win selling success.
Please. Teaching everyone to "pay to work their asses off" is not the "next best thing" - it's a trap for most who don't have the systems to strong sell and make it break even. Most of us don't want a company that pressures people into buying - we want them to be happy to have found us, and happy to pay us. That all gets determined on that "reason why" they buy in the first place.
Lisa
Brian R
Member
Lol@ Lisa
People with money got that way from spending their money wisely...a good discount to start establishes trust or good faith...not the defensiveness you're talking about.
(Chips come free with the guacamole by the way)
My marketing experience is from the real world. I've read and taken classes of course but it all comes back to what is reality and what is theory.
Your marketing strategies work for some and they are a little old school for todays audience but your still making money from it so good luck with that.
Sometimes changes need to be made with the times.
Your take on Groupon goes against what you think is good marketing so of course you will dismiss it before it becomes something bigger than you want....whether it's good for the industry or not right?
Your condescending post toward me is laughable and I take no insult all things considered. Your personality level and creativeness leaves something to be desired and that's 90% of marketing right there.
Maybe you should read a few books on how NOT to put someone to sleep while recording a message.
The Groupon deal is as good as you make it. You offer the customer something to prove yourself to them. If you're not sure of yourself or your company then don't do it.
Marketing doesn't stop at the biggening of the job.
People with money got that way from spending their money wisely...a good discount to start establishes trust or good faith...not the defensiveness you're talking about.
(Chips come free with the guacamole by the way)
My marketing experience is from the real world. I've read and taken classes of course but it all comes back to what is reality and what is theory.
Your marketing strategies work for some and they are a little old school for todays audience but your still making money from it so good luck with that.
Sometimes changes need to be made with the times.
Your take on Groupon goes against what you think is good marketing so of course you will dismiss it before it becomes something bigger than you want....whether it's good for the industry or not right?
Your condescending post toward me is laughable and I take no insult all things considered. Your personality level and creativeness leaves something to be desired and that's 90% of marketing right there.
Maybe you should read a few books on how NOT to put someone to sleep while recording a message.
The Groupon deal is as good as you make it. You offer the customer something to prove yourself to them. If you're not sure of yourself or your company then don't do it.
Marketing doesn't stop at the biggening of the job.
Lisa,
I will take Brians post as an endorsement of the products you sell and will dust off my Joe Polsih CD set and take a good honest look at it. If Brian is happy with groupon and the deal being atleast 75% of his and subs take, I am definitely going to steer clear. I would like to set up a conference call with Brian and my Fater inlaw because my father inlaw a(and I ) for that matter think it is impossible with a losing deal.
Brian do you want me to set this up and you can explain fully how it works and you can be incorporated into a Fulbright and Suffolk University Study on entrepreneurship.He is always looking for new set ups and relationships between business and clients.
I will take Brians post as an endorsement of the products you sell and will dust off my Joe Polsih CD set and take a good honest look at it. If Brian is happy with groupon and the deal being atleast 75% of his and subs take, I am definitely going to steer clear. I would like to set up a conference call with Brian and my Fater inlaw because my father inlaw a(and I ) for that matter think it is impossible with a losing deal.
Brian do you want me to set this up and you can explain fully how it works and you can be incorporated into a Fulbright and Suffolk University Study on entrepreneurship.He is always looking for new set ups and relationships between business and clients.
smastio
Member
Can I moderate the call?
I spoke at a (let me re-phrase); I was asked to speak at a Carpet Cleaning Marketing Seminar last week and I spent about 15-20 explaining the DOD phenomenon, and some of the opportunities and pitfalls. I can tell you that most people in the audience (which was a varied audience) looked at me like I had 3 eyes. Brian - you are correct in that everyone needs to keep up with the times (even you Mr. President - sorry just had to say that). Not everyone is willing to change and try new things. I'm sure that it is half the battle for what Lisa does with her marketing. I know it is for me, but to each their own. I for one enjoy these tit-for tats about marketing and ask myself - if it weren't something that people were trying to clear out of the head as not good for them, then there wouldn't be the unbelievable activity it has generated.
The one Caveat that I would say is that Groupon is NOT the only player for the DOD (Deal of the Day) platform. Look at the others, they tend to be more flexible and attractive with splits.
Heck even a bid wig at StarBucks bought a huge stake in Groupon. I'd bet he or his people know that they are doing; or they are just hopped up on caffeine.
I spoke at a (let me re-phrase); I was asked to speak at a Carpet Cleaning Marketing Seminar last week and I spent about 15-20 explaining the DOD phenomenon, and some of the opportunities and pitfalls. I can tell you that most people in the audience (which was a varied audience) looked at me like I had 3 eyes. Brian - you are correct in that everyone needs to keep up with the times (even you Mr. President - sorry just had to say that). Not everyone is willing to change and try new things. I'm sure that it is half the battle for what Lisa does with her marketing. I know it is for me, but to each their own. I for one enjoy these tit-for tats about marketing and ask myself - if it weren't something that people were trying to clear out of the head as not good for them, then there wouldn't be the unbelievable activity it has generated.
The one Caveat that I would say is that Groupon is NOT the only player for the DOD (Deal of the Day) platform. Look at the others, they tend to be more flexible and attractive with splits.
Heck even a bid wig at StarBucks bought a huge stake in Groupon. I'd bet he or his people know that they are doing; or they are just hopped up on caffeine.
why the hell would a congressional fulbright scholar award winning educator sitting on the congressional board of oversight for the fulbright , Nobel recognized economist let you moderate a discussion call? What are your credentials?
smastio
Member
I vote... !gotcha!
Brian R
Member
I feel a hotseat coming on for the green room.
Isn't there a chat room in the blog area now? Is that the greenroom? I 'haven't checked it out.
By the way Groupon just emailed me and confirmed the date for 3/3/11. They said before that they were 95% sure that was the date but now they are 100% sure.
Wish me luck.
The guy in Sacramento is up to 400 sold.
I'm getting nervous....lol
Isn't there a chat room in the blog area now? Is that the greenroom? I 'haven't checked it out.
By the way Groupon just emailed me and confirmed the date for 3/3/11. They said before that they were 95% sure that was the date but now they are 100% sure.
Wish me luck.
The guy in Sacramento is up to 400 sold.
I'm getting nervous....lol
