Has Groupon reached saturation

[ruff]

Today, I got contacted by Groupon both by email and by phone to advertise with them.

Needless to say- they have excellent taste in carpet cleaners.
And I am definitely top 25 material, especially in the ESL carpet cleaning category.

However, how many of you have been contacted by them?
Have they reached market saturation?
Will they now be calling any cleaner with a pulse and a working phone number?

Or is it time to I open the Champagne bottle.
It has been collecting mold for a long time.

 

[FB7777]

the discussion of Groupon has certainly reached saturation

 

[Brian R]

the discussion of Groupon has certainly reached saturation

They searched for reviews of my company online before they would speak with me about doing another deal....then they checked the last time I ran a deal with them and I only had 1 complaint from some crazy lady....

No I don't know why they didn't check that before.
It may have something to do with me hounding the hell out of them to do another deal for the last year. lol

They won't run a deal with company that has a bad reputation.

 

[XTREME1]

I'd becareful in the San Fran area, you guys may take it up the ass.........I know its getting old but I just can't help myself sorry Ofer

 

[Brian R]

I'd becareful in the San Fran area, you guys may take it up the ass.........I know its getting old but I just can't help myself sorry Ofer

Greg....the new Harper. :roll:

 

[John Olson]

Groupon's life span is almost up. The business model is going to have to change. They rely on fear. People can only lose money for so long before they either wake up and realize that was really stupid or go out of buisness. No matter how many you sell at a loss you will never make up for it in volume. :mrgreen:

If you don't get it let me break it down. They prey on business that are struggling for traffic/sales. They offer a "promise" of new customers at a very high price with the hope(yours not theirs) that they will stay your customer.the thing that groupon knows is they are not now nor will they ever be your customer. When they are ready to use a service like yours they will go back to groupon and buy from the next sucker willing to lose money to get their business. The reason this works is fear. The fear that the other guys is getting all the work and your missing out. The economy sucks and lots of folks are panicing and grasping for straws, as if they are in quicksand and we all know what happens if you panic in quicksand.

I could be wrong but the old saying holds true "liars's figure but figures dont't lie"

 

[Brian R]

When the woman go in for a Groupon Mani....don't you think the salon offers a pedi too?

The loss is there if you let it be there...we all offer more services...so offer them and don't lose money on the deal.

 

[John Olson]

A loss is a loss you cannot make it up in volume Brian. Unless there is some new math I don't know about.

 

[Brian R]

A loss is a loss until you gain.

You still get money for doing these jobs

If I go to a house for the Groupon price and clean their tile for $300.00 ...is it still a loss?

 

[XTREME1]

John groupon will keep going. People need to stop putting losers out there. As everyone knows 66% are successful when they market something that already has a margin of profit and all others fail

 

[dgargan]

John I was just wondering how I lost on this deal. Please check my math because I'm not up the new math your talking about.

One of our groupon jobs we did a carpet that deal was $75 for $150. We made $37.50 from groupon and then did the wood floors for $1600. So we made $1637.00 on that job.

I'm confused as to where I lost money?

 

[ruff]

Regardless of everybody's proficiency in math, and as far as I am concerned you are all certified math geniuses, the thread was about Groupon reaching saturation.

Personally, as I mentioned in previous threads, I don't want the price shoppers, however it seems that for some of you it has worked.
Actually, for most, it has been too early to tell, as you will only know after a few years if these actually turned out to be long term clients and what will they be willing to pay. And what repercussions you may get from your existing full price paying clients.

However, let us assume you were very successful.

The question is: Is Groupon now contacting tons of businesses, (as they contacted me, unsolicited if I may add) which is a sign of saturation and shows that they need more fresh blood, or not?

Assuming they need more fresh blood, why aren't their existing patrons repeating?

Now, they are also a publicly traded company in the stock market. That means that they need a constant expansion of income to increase the stock value.

How many of you been contacted by them?

 

[Brian R]

It took me a year to get back into Groupon....I'm sure they are not hurting for candidates....maybe in certain areas.

They are even doing the "side deals" now to accommodate more companies.

Like most companies they are trying to grow...and are growing.

 

[ruff]

Brian, no sleep?
You truly are a 24/7/365

And to answer the question: Did you contact them or did they contact you?

 

[Brian R]

I saw Groupon on the news over a year ago talking about a Nail Salon in Chicago that sold over a thousand of them.

So I jumped on the internet...told Mikey's Board....and then signed up on their website for the Dallas area...it was very new at the time.

After doing the deal....it worked out so well...I tried to do the deal in my Sacramento area (once it opened...Groupon wasn't there yet)
So I got into the "pipeline" a bunch of times for Dallas again and Groupon kept telling me my deal wasn't "good enough" (this is the biggest problem with Groupon IMO)

So I spoke with my subs here and we all agreed on a final deal.....I made it slightly unique (Groupon looks for those) and now I'm set for March 3rd.....and scared as hell! lol

 

[Brian R]

Oh, and sleeping is for fags. shiteatinggrin

 

[John Olson]

John I was just wondering how I lost on this deal. Please check my math because I'm not up the new math your talking about.

One of our groupon jobs we did a carpet that deal was $75 for $150. We made $37.50 from groupon and then did the wood floors for $1600. So we made $1637.00 on that job.

I'm confused as to where I lost money?

How much did you make cleaning the carpets at 37.50? I understand the concept of loss leaders. Lots of lcompanies have used that tactic and CAN work in the short term but It is unsustainable. Before the age of the Internet Foot traffic was paramount to a companies health and getting them in the door anyway you could worked and this is why Groupon took off like it has. The problem is people today have short attention spans and want it all and they want it now and they want it for half price. Groupon fills the consumer's need. Problem is the business model cannot go on based on hope, hope that if you are willing to lose enough money that it might pay off by selling something else but you still lose money no matter how mch else you sell unless you can really clean at 37.50

 

[Mike Draper]

John Olson" data-source="" class="bbCodeBlock bbCodeBlock--expandable bbCodeBlock--quote js-expandWatch">

Groupon's life span is almost up. The business model is going to have to change. They rely on fear. People can only lose money for so long before they either wake up and realize that was really stupid or go out of buisness. No matter how many you sell at a loss you will never make up for it in volume. :mrgreen:

If you don't get it let me break it down. They prey on business that are struggling for traffic/sales. They offer a "promise" of new customers at a very high price with the hope(yours not theirs) that they will stay your customer.the thing that groupon knows is they are not now nor will they ever be your customer. When they are ready to use a service like yours they will go back to groupon and buy from the next sucker willing to lose money to get their business. The reason this works is fear. The fear that the other guys is getting all the work and your missing out. The economy sucks and lots of folks are panicing and grasping for straws, as if they are in quicksand and we all know what happens if you panic in quicksand.

I could be wrong but the old saying holds true "liars's figure but figures dont't lie"

As I told Matt before his very first groupon. People that pay "dirt cheap prices" for carpet cleaning are only loyal to the dirt cheap price. Most will have no interest in upgrading to a premium cleaning as they are the bottom of the barrel customers. These folks most likely never have their carpet cleaned and are using this cheap opportunity to have it done. If they ever call you back they will not do business with you when your price is triple what groupon was.

 

[Brian R]

That's crap Mike. These are just regular to better people looking for a deal like anyone else. I believe that most people are good people and because they get such a good deal they are willing to purchase more....not all...but most.

John, every job is based on "hope" I don't care how you market your company.


Pre-inspections are base on the hope that you actually get the job.

The difference with Groupon is the money is paid before you ever get there....sure it's not a lot of money per job but think of it as a down payment.

When I did Groupon last time...it worked well, I've been doing repeats and I'm making money without high pressure sales or "volume" work.

Not sure what the grief is all about.

Groupon customers are NOT valpak customers...they are generally quality clients...your stay at home moms etc.

 

[Mike Draper]

must be different where you live. Groupon may be the demise of a friend of mine.

 

[Brian R]

Carpet cleaning?

It's all about how you handle it too.....Yellowpages have been the demise of many.