Jtuseo
Member
Do you guys think that Groupon and living social have killed business? OR do you think that the carpet cleaners in the daily deals are no different that the penny saver days when the bait and switchers all were in them?
Sales killers?
- Thread starter Jtuseo
- Start date
ruff
Member
John, that depends a lot on who is your target market and what kind of market (clientele) your business operates in.
Here in S.F. , as far as I know, I have not been affected by them at all. Business has been very good. However, I serve a niche market.
Occasionally, I get one of the ex- Groupon clients that was really pissed off at the service they got. So, in a sense, it is almost like free advertisement for me.
On the other hand, I guess I don't get to know or hear from the ones that did get a good service and stuck with that company.
Here in S.F. , as far as I know, I have not been affected by them at all. Business has been very good. However, I serve a niche market.
Occasionally, I get one of the ex- Groupon clients that was really pissed off at the service they got. So, in a sense, it is almost like free advertisement for me.
On the other hand, I guess I don't get to know or hear from the ones that did get a good service and stuck with that company.
renegade_cowboy
Member
Local guy did one here, new to the business sold 250 and is offering great service. It is a great way to build up a database quickly even if you retain half of them. He will do a little better than break even, but its the long term relationship is where he will get his profits. He is booked out almost two months and get daily upsell just as the same as you and I.
carpetcleaner
Member
The people that I know who use Groupon, only use it for the price. It is rare that they will ever use the business again at regular price. These are friends and neighbors, so it is a limited sample. They just look to Groupon for the next deal.
Becker
Member
My thought is, how many of those groupon buyers will be happy paying $199 or more. for those 5 rooms they paid less than half as much the year before?
Or will they buy the next deal that is sent to their emailing weekly?
I think a budding company can make a little money via a groupon type deal with the right offer and up sales. I just wonder how many will be happy paying 50-70% more.
I've kick around the idea of ruining one for a 2nd location. But not ready to pull that trigger considering the volume that could be sold.
Do I think it hurts the biz as a whole?
NO....
I think groupons attract a certain market.. Fractional depreciation of our services.
Is it a new form of B and S in some cases? Maybe.
Free weekly papers still run the $6,99 per room ads.
Or will they buy the next deal that is sent to their emailing weekly?
I think a budding company can make a little money via a groupon type deal with the right offer and up sales. I just wonder how many will be happy paying 50-70% more.
I've kick around the idea of ruining one for a 2nd location. But not ready to pull that trigger considering the volume that could be sold.
Do I think it hurts the biz as a whole?
NO....
I think groupons attract a certain market.. Fractional depreciation of our services.
Is it a new form of B and S in some cases? Maybe.
Free weekly papers still run the $6,99 per room ads.
Jack May
That Kiwi
We dont have as much of that over here, a few pop up here and there on these types of sites.
I don't feel that it has impacted my business.
While I don't use them, and personally I don't think I will as it's doesn't tend to attack my preferred clientelle. But it raises a point that things change and we always need to review our situation. These DoD type stuff are probably here to stay and are therefore something to consider, maybe even try and see how they will effect or benefit your business.
In a downturn, we have to sometimes take on less than ideal things to have a broader base. I have done that a little and every bit helps, hopefully it'll put me in a stronger position for the economy upturn.
John
I don't feel that it has impacted my business.
While I don't use them, and personally I don't think I will as it's doesn't tend to attack my preferred clientelle. But it raises a point that things change and we always need to review our situation. These DoD type stuff are probably here to stay and are therefore something to consider, maybe even try and see how they will effect or benefit your business.
In a downturn, we have to sometimes take on less than ideal things to have a broader base. I have done that a little and every bit helps, hopefully it'll put me in a stronger position for the economy upturn.
John
mirf
Supportive Member
I have run them and had other cleaners in area run them. They build a data base and it remains to be seen what percent return in the long haul.
Living social had better success at upsells. Also the clients were much easier to deal with and no trashed places. I would not do it again as for me there
was no profit and just names. To much to give away to recoup on upsell. When I gave great service I think many felt they would have the same success with the next cleaner.
Bottom line no more for me.
Living social had better success at upsells. Also the clients were much easier to deal with and no trashed places. I would not do it again as for me there
was no profit and just names. To much to give away to recoup on upsell. When I gave great service I think many felt they would have the same success with the next cleaner.
Bottom line no more for me.
Mardie
Member
For a service such as CC their is too much bad about the whole groupon thing to even get into it. The sole purpose of these deals is to get repeats,That means you will have to wait at least 2-5-10 years before these (TYPES) will get their carpets cleaned again and they will not pay the price.They will only wait for the next deal and if these deals are not available they will call 20 companies to find the cheapest price.Bottom line is their are much better ways to spend your money to promote your sales.
It should be noted that not many companies who have used these deal promotions will admit to how bad they are.This would be like admitting their own failure and it is not. Upsell at full price? HA HA LOL
I believe that these deal of the day thingies are a drain on the whole service industry.
It should be noted that not many companies who have used these deal promotions will admit to how bad they are.This would be like admitting their own failure and it is not. Upsell at full price? HA HA LOL
I believe that these deal of the day thingies are a drain on the whole service industry.
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Danny Strickland
Member
use it as a part of an over all marketing program and judge it on that alone.
my wife uses Groupon for lots of stuff for the family. we bought a detail cupon for our SUV. we have referred the guy to others based on his quality of work, so if thats what you are looking for, give it a shot!!
PS do you have your biz running at peak performance, is your CODB honed to make max profit??? if not your giving away $$$ as it is!!!
my wife uses Groupon for lots of stuff for the family. we bought a detail cupon for our SUV. we have referred the guy to others based on his quality of work, so if thats what you are looking for, give it a shot!!
PS do you have your biz running at peak performance, is your CODB honed to make max profit??? if not your giving away $$$ as it is!!!
Lee Stockwell
FOJL
Few fail because they "can't clean".
Most fail because they "can't count"....or don't.
Most fail because they "can't count"....or don't.
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Jack May
That Kiwi
Spot on Lee!!
Aother thing that many fail at is when looking at numbers only looking at one line, sales.
Im a big fan of the newer online accounting like www.xero.com as it shows things more clearly in 'real time'. Too often, with traditional accounting software, we can find ourselves bubble wrapped from the true expenses of the business until the end of financial year returns come back.
These newer options allow for continual reconciling as you go in a much clearer sense so you can see on a month by month basis exactly how you are going. Sure these DOTD may bring in heaps of work and on the sales line look impressive, but the cost of the jobs has sky rocketed and it may just show a loss for that month.
John
Aother thing that many fail at is when looking at numbers only looking at one line, sales.
Im a big fan of the newer online accounting like www.xero.com as it shows things more clearly in 'real time'. Too often, with traditional accounting software, we can find ourselves bubble wrapped from the true expenses of the business until the end of financial year returns come back.
These newer options allow for continual reconciling as you go in a much clearer sense so you can see on a month by month basis exactly how you are going. Sure these DOTD may bring in heaps of work and on the sales line look impressive, but the cost of the jobs has sky rocketed and it may just show a loss for that month.
John
