Bob Hauser
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Whats the deal with this ? What are your thoughts ??
- Thread starter Bob Hauser
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Ken Snow
RIP
I don't understand your question.
Bob Hauser
Member
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- Nov 15, 2006
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My question is...this offers seems to good to be true. How could is he making a profit with this offer? 3 rooms of cleaning with protection and a loveseat for $75.00?
Jtuseo
Member
Very simple, he is not making a profit, what he is doing is he is going to sell 150 of those groupons. He is then going to save those 150 name and re-market to them for the next few years. He will retain as regular customers 10% -20% He will up sell and get other services from about 10% of those people. Do the math if he does this once a year over 5 years. This is a great formula for a o/o who is just starting or slow and needs a shot in the arm.
Jtuseo
Member
Also read his fine print any home more than 150 square feet per room is an added fee. He will profit from this long term, if I was him I would not include stain guard. That is his up sell. He will learn. I have done about 4 groupons this year. I am going to continue to do them untill I have done 2,500 groupons. 2011 was my first year and I did 650 of them. 75% of the people I will never see again and dont want to. But if I keep 25% or even 15% do the math over 5 years. Plus I have a flow of about 150 new paying customers come in every year. Over five years you can have a nice business. Just do quality work and great customer service. Simple.
Bob Hauser
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Thank you for you truthful & clear insight about the groupon deal. It still seems to be a expensive approach to gain a repeat customer but understand the logic of it all.
F
FB7777
Guest
Great explanation John
Reminds me of my ADVO , ValPak days... Without the. Upfront costs
First few years in this business I was spending $15-20 Grand in advertising to gain customers
With Groupon the most you will lose is your time initially, but as. John says ,you should have some percentage of customer retention
Reminds me of my ADVO , ValPak days... Without the. Upfront costs
First few years in this business I was spending $15-20 Grand in advertising to gain customers
With Groupon the most you will lose is your time initially, but as. John says ,you should have some percentage of customer retention
S
sam miller
Guest
Bob Hauser said:
If You read down its 2 offers both rediculous 3 rooms and protector $75.00 regularly $180.00
The other is 3 rooms cleaning and water gaurd and a loveseat for $99.00 regularly $255.00
Its a way to get into the home and they probably dont do a great job!
SHOCKER!
F
FB7777
Guest
That always seems to be the assumption on the boards, Sam
Imagine tho, if a company were to provide a great quality service, showed up on time , offered additional services while in the home and the customer really felt that they received more than their money's worth?
Imagine tho, if a company were to provide a great quality service, showed up on time , offered additional services while in the home and the customer really felt that they received more than their money's worth?
Ken Snow
RIP
Fred Boyle said:
X2
While I have no interest in these offers for my business, the only ones who say they can not work are those that have never don them, whiile the MB'rs who have done them say they were worthwhile and may or will do it again.
Ken
Dolly Llama
Number 5
lemmie see if i have this right...
"up to" 450 sf for $75 = 17 cents a ft
donno what cheapon's cut is, but i can break even at well below that cleaning open areas or empties .
could even make a profit at 17 cent-o-square if a half dozen or more are lined up in the same area of town
I'm a dumbass when it comes to marketing and biz management ...(fo-reel)
Got pretty good "people skills" though, so the above deal would seem to be a better way to get into a home to strut your stuff compared to the "free room" offer some marketing gOOroo's have suggested.
at least I'd be pretty sure I wouldn't "lose" much (if any) money cleaning 450sf/ $75 for a chance to schmooze Mrs Phiff
..L.T.A.
"up to" 450 sf for $75 = 17 cents a ft
donno what cheapon's cut is, but i can break even at well below that cleaning open areas or empties .
could even make a profit at 17 cent-o-square if a half dozen or more are lined up in the same area of town
I'm a dumbass when it comes to marketing and biz management ...(fo-reel)
Got pretty good "people skills" though, so the above deal would seem to be a better way to get into a home to strut your stuff compared to the "free room" offer some marketing gOOroo's have suggested.
at least I'd be pretty sure I wouldn't "lose" much (if any) money cleaning 450sf/ $75 for a chance to schmooze Mrs Phiff
..L.T.A.
FredC
Village Idiot
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Fred Boyle said:
I've always thought this would just make them more likely to take a chance on a groupon again the next time they needed a service.
but I guess if you were able to retain a small percentage it would be worth it...........
ruff
Member
Ken Snow said:
X2
While I have no interest in these offers for my business, the only ones who say they can not work are those that have never don them, whiile the MB'rs who have done them say they were worthwhile and may or will do it again. Ken[/quote:23op74m6]
Have you or Fred tried them Ken?
Actually, from the many posts on different boards with the exclusion of Brian, it seems like most will not do it again.
And though it is a little too early to tell (and frankly not everyone is believed to give an honest answer) there is no proof of much retention either. I could be wrong.
As far as, making enough money even on that offer, that depends on one's business structure. And if one does and needs the business and can retain some clients. Then, power to him, it's a solid business decision.
idreadnought
Supportive Member
It is not $75 in your pocket for 3 rooms. It is $37.50 in your pocket for three rooms. Groupon gets their cut. If you can make money doing jobs, any jobs for $37.50 after marketing expenses then you have much less overhead than me.
Second I think the cost to gain a customer is too high. You could do direct mail and gain customers for much less money.
Second I think the cost to gain a customer is too high. You could do direct mail and gain customers for much less money.
daniel@procarpet
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Don't look at this from a carpet cleaners perspective.
The customer is willing to pay 75 dollars to have three 150 sq ft rooms cleaned.
Living room is 250
MB 250
Hallway
You keep all the profit on the extras. 5 areas and let's say your price is 30 dollars per area. That is 75+60=135
Your cut is just under a hundred bucks for two rooms and hallway. A lot here advertise cheaper rates than that.
Now there is no way the guy is applying protector properly so likely just water, but if he does he can dilute it down and spray a little. I really have no opinion on this and he should not have included it. He could have added 60-70 dollars extra for protector so now his cut is even more.
Now the customer was willing to pay 75 dollars for the job and next time you get to keep the full 135 dollars or even say the normal price was three room 99 dollars.
The numbers add up to make decent money.
If you have a good helper and not a single wand machine you can really knock the larger jobs out.
I like the deal except for the carpet protector.
The customer is willing to pay 75 dollars to have three 150 sq ft rooms cleaned.
Living room is 250
MB 250
Hallway
You keep all the profit on the extras. 5 areas and let's say your price is 30 dollars per area. That is 75+60=135
Your cut is just under a hundred bucks for two rooms and hallway. A lot here advertise cheaper rates than that.
Now there is no way the guy is applying protector properly so likely just water, but if he does he can dilute it down and spray a little. I really have no opinion on this and he should not have included it. He could have added 60-70 dollars extra for protector so now his cut is even more.
Now the customer was willing to pay 75 dollars for the job and next time you get to keep the full 135 dollars or even say the normal price was three room 99 dollars.
The numbers add up to make decent money.
If you have a good helper and not a single wand machine you can really knock the larger jobs out.
I like the deal except for the carpet protector.
Tony Neville
Member
Maybe I'm Stupid for asking, but what if you did half off of a gift card. Say a 50$ gift card for 25$ it would probably be given as a gift or maybe the end user would buy it, and you would only be getting 12.5 (half of the 25) but it would get your name out while not working you in to the poor house.
So if your average job is 150$ you would end up with 112.50$ and everyone is happier.
Tony
So if your average job is 150$ you would end up with 112.50$ and everyone is happier.
Tony
Royal Man
Member
Sounds like a crazy way to get clients that are prone to just go to the next Groupon carpet cleaning offer in the area for their next cleaning.(or wait for your next Groupon offer)
Why not instead draw in clients from the other great things you offer versas throwing out a low un-realistic price that demands an upsale to just break even.
Then they will be more apt to become longterm repeat clients that will pay a realistic price.
$37.50? It screams desperation.
John,
There are so many Groupons in your area the client will just go to the next Groupon.
They don't pick a company because of marvelous service.
http://www.groupon.com/deals/puregreen-carpet-nyc
Why not instead draw in clients from the other great things you offer versas throwing out a low un-realistic price that demands an upsale to just break even.
Then they will be more apt to become longterm repeat clients that will pay a realistic price.
$37.50? It screams desperation.
John,
There are so many Groupons in your area the client will just go to the next Groupon.
They don't pick a company because of marvelous service.
http://www.groupon.com/deals/puregreen-carpet-nyc
daniel@procarpet
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Royal Man said:
Dave I think Groupon is ridiculous but I just showed how this guy will average over a hundred dollars per job if not more for three standard areas.
He is not going to make 37.50 on any jobs unless they are really small.
Two rooms and a hallway for 100 dollars is probably higher than your standard rate.
And even if he does it next time for the same price three rooms 75 dollars 150 sq ft max he will still make 150 dollars or more to do three rooms.
Royal Man
Member
danielc said:Royal Man said:
Dave I think Groupon is ridiculous but I just showed how this guy will average over a hundred dollars per job if not more for three standard areas.
He is not going to make 37.50 on any jobs unless they are really small.
Two rooms and a hallway for 100 dollars is probably higher than your standard rate.
And even if he does it next time for the same price three rooms 75 dollars 150 sq ft max he will still make 150 dollars or more to do three rooms.
Dream on buddy!!
Next time for full price
S
sam miller
Guest
Fred Boyle said:
I didnt say good job I said great job! when You cut price you cut corners.
I could explain more to you about this and personal experience but i'm busy.
danielc said:Royal Man said:
Dave I think Groupon is ridiculous but I just showed how this guy will average over a hundred dollars per job if not more for three standard areas.
He is not going to make 37.50 on any jobs unless they are really small.
Two rooms and a hallway for 100 dollars is probably higher than your standard rate.
And even if he does it next time for the same price three rooms 75 dollars 150 sq ft max he will still make 150 dollars or more to do three rooms.
If you pull out "the square footage is over what the deal covers" you won't get hardly any repeats...
Most will feel they were ripped off by the small print.
There is NO way you can go out and do a job for $37.50, and if you think you can, I will watch for your truck mounts for sale for SUPER cheap!
Really, you are better off just giving your service away with raffles then doing this IMO..
In my first year or two I would have done it though, since I had nothing better to do. As a matter of fact I would run one now if I could make them all use it by April 1st 2012...
Waaay too many ways to advertize then to do this, we sell a service not a product!
