Scoop on Groupon

[rhino1]

Against my better judgement i ran a groupon for the winter thinking it would at least fill the dead times... little did i know what i was getting into...

We sold 63 which doesnt sound like much but for our area it was pretty good, considering we sold them in the winter. Groupon was quick with the first check, but the 2nd check got "lost in the mail" twice and was 2 months late. The third check arrived on time, one month sooner than the second check. Go figure.

The typical groupon customer we had wasn't interested in spending any additional money on other services, even though we had a discounted "while we are here" sales sheet.

More than half of the groupon customers ignored the terms we had set and tried to throw additional work on us for free, for the privilege of them allowing us in their home. More than one got pretty aggressive about this.

Had a delightful time doing the work for many of the Groupon customers, and had a few that already used us again. That bit of good news was offset by the customers we already had that bought the groupon despite it being for new customers only. Some we lost forever when I told them to get a refund. I finally gave up and honored it for others, so I would count that as lost income.

Many of the groupon customers have tried to schedule service past the expiration date and were unhappy that we did not allow them to do this. More than 15% of the buyers have waited till the last minute and expected next day service.

15% of Groupon customers cancelled or tried to reschedule with less than 24 hours notice.

 

[Connor]

Do the ones that tried to schedule past the expiration date get a refund?

 

[rhino1]

They should. Actually, groupons never really expire. After the expiration date, the value of the discount becomes the price they paid for the groupon. Say they paid $49 for the groupon, they would get a credit for that amount off of a regular priced cleaning.

I have told them they should just get a refund, but it is up to them. After the expiration date Groupon may not issue refunds, I don't know.

 

[Ross Buettner]

Why can't they just do a large deal and discount it?

3 rooms for 49.00 while we screw you for the rest (and you'll get pissed off and give a bad review even though you're in the wrong) just doesn't make sense to me.

 

[rhino1]

I'm not sure what you are trying to say. I think you mean that we would try to sell them additional rooms at an inflated price. Actually, we did the opposite. We offered additional rooms at $25 when the regular price was $33.

We didn't use the groupon as a bait and switch offer as some have done. It was primarily a trial offer to new customers in the hopes of getting lifetime customers. As such, we tried to give them the best experience possible given the limited budget we had to work with.

 

[Bob Foster]

And from what your saying Chris it sounds like you wouldn't do another Groupon deal.

Call me prejudiced all you want, but all I can think of is a bunch of sniveling picky cheapskates that try to weazel even more from the person doing the work. Not in a million years would I do a Groupon. or be part of a pyramid scam

 

[Bee Busy]

Against my better judgement i ran a groupon for the winter thinking it would at least fill the dead times... little did i know what i was getting into...

We sold 63 which doesnt sound like much but for our area it was pretty good, considering we sold them in the winter. Groupon was quick with the first check, but the 2nd check got "lost in the mail" twice and was 2 months late. The third check arrived on time, one month sooner than the second check. Go figure.

The typical groupon customer we had wasn't interested in spending any additional money on other services, even though we had a discounted "while we are here" sales sheet.

More than half of the groupon customers ignored the terms we had set and tried to throw additional work on us for free, for the privilege of them allowing us in their home. More than one got pretty aggressive about this.

Had a delightful time doing the work for many of the Groupon customers, and had a few that already used us again. That bit of good news was offset by the customers we already had that bought the groupon despite it being for new customers only. Some we lost forever when I told them to get a refund. I finally gave up and honored it for others, so I would count that as lost income.

Many of the groupon customers have tried to schedule service past the expiration date and were unhappy that we did not allow them to do this. More than 15% of the buyers have waited till the last minute and expected next day service.
15% of Groupon customers cancelled or tried to reschedule with less than 24 hours notice.

what a clusterf&$k...Brian will chime in soon to tell us how some are aren't savy enough to manage it

 

[rhino1]

No Bob, I would not do another groupon. You are correct in your characterization of the groupon customer we had in many cases. Many seemed to think we should just be happy to be allowed in their home to work for them for nothing. Imagine that.

 

[FredC]

you obviously didn't structure the deal correctly...may I suggest a mentor....I know a guy

 

[Kevin. McCreary]

I would never consider doing a Groupon again. I had a friend talk me
in to it. He is just starting out, I have all the work I can handle.
He has it "kinda" mastered after 3 or 4 runs. You basically have to
call the shots with Groupon and don't let them suggest the offer.
He made a pretty valid point when he told me to do a 1 room offer
for $25-$30. This way you get more upsales because most people
have more than 1 room, you get 100% of the extra room sale instead
of splitting it with Groupon. In the event you do not get an upsale, you
have less time invested in the job by only doing 1 room. If you know
right up front you would never want a repeat client out of the job,
you can cut your losses much faster by doing the one room and
getting the hell out, then click the do not contact tab on Servicemonster!

 

[rhino1]

you obviously didn't structure the deal correctly...may I suggest a mentor....I know a guy

I don't know how to structure a deal like this when - in my experience - many groupon buyers claimed they did not notice those pesky terms and conditions of the deal. I can only surmise that something on the groupon website causes people of normal intelligence to develop a temporary inability to read.

 

[Able 1]

Yeah, no matter what you can squeeze out(upsell) the custy, you know there last thought will be:
"Wow, he was a GREAT carpet cleaner http://www.youtube.com/watch?v=r5g_gs6nnyo!

:mrgreen:

 

[Brian R]

Hey Chris, no offense to you but I would say that the price point was too low.

The lowest I've done is $55 and I wasn't real happy with whom it attracted...But it wasn't horrible either.

$65 to $79 seems to be the sweet spot AND the geo area you put the deal in is important as well.

At a low price like that I can see where they might think you are a bait n switch company...But educating them as to why you ran the deal so low ( to acquire customers) is the key to maybe getting some good repeats.

You mentioned the "while we are here menu". I hope you didn't let that do all your talking for you.


Groupon is definitely not for everyone and I've never said it was.

Sorry it didn't work out for you.

 

[rhino1]

Brian- I was surprised to find most groupons were purchased by folks with nicer homes. In the nicest home we did, the lady got so mad that I wouldn't do a rug for free and dared to ask $25 to clean a flight of stairs that she had her husband call to chew me out too.

 

[Dolly Llama]

I was surprised to find most groupons were purchased by folks with nicer homes

why?
It's a myth that peeps in nicer homes will pay more than those in a 1950's built in the burbs bungalow


..L.T.A.

 

[Brian R]

Yeah, I like the mid level homes...Too ghetto and no money....Too high end and too much money.


Right in the middle seems to be the best demo.

That's why that price point is so important....And the wording and structure of the deal of course.

 

[rhino1]

So do you artificially inflate your prices to sell a groupon at an imaginary 50% of an imaginary value?

My biggest problem is I have morals and don't believe lying, cheating, or stealing is justified by doing it for a business. Not saying you do any of those, but I have seen situations where it has been inferred.

 

[Brian R]

Since I have sqft limitations on my prices and the room prices I list are always special prices.... I have to take a mid case scenerio and then cut it in half.

I try to make it as honest as possible... Whatever that means.

I just don't think there is a way to do it perfectly because of pricing structure.



Edit: I've charged well over $130 for 3 rooms carpet cleaning.

 

[Vivers]

Groupons and the like SUCK! Bad for our industry! I am telling you. You cant just make the deal up. When they called me I tried to tell them what I was willing to do and they said sorry, these are our packages. I said sorry, that is laughable. Not for us ever!

 

[rhino1]

I can see where it would be helpful for a new or struggling owner-operator to make some needed contacts and just to have something to do.

What I found is many folks had already heard of us, heard good things, and were going to use us anyways. Those, and the repeat customers who bought the groupon made this a losing proposition for us.

I don't fault Groupon for the way they do business, it is what it is and I went in knowing there would be a downside or two. I would or could have made more money if I had not worried so much about the reputation of our business. If I was new, broke, or shady I could have taken advantage of many situations.

One customer had purchased a groupon for another cc.er who charged her an additional $70 plus the groupon because her carpet was actually in need of cleaning. He was apparently pushy and rude and intimidated her into giving him more money. These are the people that give our industry a black eye. They are also the ones that make money off of the Groupon. Not my style.

I'm sure that guy considered himself quite the salesman though.

 

[Brian R]

Groupons and the like SUCK! Bad for our industry! I am telling you. You cant just make the deal up. When they called me I tried to tell them what I was willing to do and they said sorry, these are our packages. I said sorry, that is laughable. Not for us ever!

Sure you can make the deal up yourself....But who's going to see it? That's what you're paying Groupon for.

 

[Connor]

I was surprised to find most groupons were purchased by folks with nicer homes

why?
It's a myth that peeps in nicer homes will pay more than those in a 1950's built in the burbs bungalow


..L.T.A.

I thought the idea fo getting the "high end" custys was cos they are supposedly and easy clean...meaning cos they really ain't as dirty. (nope, I didn't think so either)

 

[Dolly Llama]

I thought the idea fo getting the "high end" custys was cos they are supposedly and easy clean...meaning cos they really ain't as dirty. (nope, I didn't think so either)

yea, they don't live like nOrmAl peeple
their dogs don't have oils in their coats or ever have accidents, none of them or their kids eats popcorn, ice cream, cake or candy ... or drinks rutbeer in the family rm while watching Mutual of Omaha Wild Kingdom and Walt Disney on Sunddee evenings....




there are high end homes and hi-end "custys" .
Hi-end custys are happy to pay top dollar for a top job..and they clean their carpets regularly

Not all hi-end homes have hi-end custys living in them..but all neighborhoods have hi-end custys living there .

as far as "clean" carpets to clean, the only predictable pattern I've found are the older folks who's kids are grown and out on their own ..in "general" their carpets are rarely dirty

the other predictable pattern is when you hear,

" my carpets are terrible" .....expect carpets in great shape and vac'd when you get there

when you hear,

"my carpets aren't bad, just a few spots is all"....expect a disaster zone


..L.T.A.

 

[Kevin. McCreary]

The reality of it is, people who coupons are looking for a deal. If
thats the type of client you are looking for, media like Groupon is
a good way to find them.

 

[rhino1]

I don't think that is correct. Many of our customers use coupons and come from many different situations. One thing they have in common is most are delighted to get the level of service we provide for the price they pay. Groupon customers are a different type entirely and it is interesting- to me anyhow- that regular customers who bought the Groupon in spite of being excluded were also some of the worst that I already had the misfortune of having worked for.