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Groupon?
Posted by Tom on February 24, 2011 at 3:34 pmI’m hearing a lot lately about Groupon.
What have you heard or found.
If you have used it, what were the results?
Thanks!
rjcutl replied 13 years, 9 months ago 9 Members · 12 Replies -
12 Replies
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I don’t intend to pursue this avenue, but check out THIS GUY!
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Saw an article about Groupon in Tire News. Here’s a link
http://www.tirereview.com/Article/84257/online_group_discount_programs_guarantee_new_customers.aspx
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That story just reaffirms my decision NOT to use this service; it just encourages price shoppers. (I hesitate to use the term “bottom feeders”, they are different) While not all businesses will have this kind of response, I have found that sound business practices, delivering a quality product, and charging a fair price will always result in a financially stable business. I feel it’s important not to panic when business slows, and it can slow for may reasons. For us, the change in seasons has a lot to do with it. For many, the current political and economic climate may affect business. You may have to shift gears and diversify business practices, but don’t panic and give away the business you do have. That makes no sense.
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I think we are seeing a trend here. This is from the Wall Street Journal…
http://online.wsj.com/article/SB10001424052748704050204576218813288848414.html?mod=dist_smartbrief
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Here is yet another link to an interesting story. Another man’s experience with GROUPON and another provider, LIVING SOCIAL. The more information you have, the better prepared you are to make a decision.
http://money.cnn.com/2011/04/26/technology/groupon_vs_livingsocial/index.htm
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I used it on a bike festival we put on. They want you to give a supper discount plus they get a percentage & then mail you a check. There percentage is negotialble. Wouldn’t use them for my shop. It will only bring you the “Cheap Charlies” that cost you more.
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My last comment I dont think posted. We are currently in the works of coming up with a promotion to use for Groupon. They offered to feature our shop. Yes you have to discount 50% off and yes you have to give Groupon 50% of what you make BUT i dont think you would necessarily use this to ‘make’ money. Although i am not willing to lose either. But in one email that groupon sends i will reach 80k people in my area. my shop name will be out there. So I will let you know how it goes once it is on there but I know that I use Groupon and all of my friends/family do. Its the new ‘thing’. If i’m not losing money with it I dont think it can hurt. Now the catch is…. finding a promo where you wont lose money. Keep you updated…..
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We did a Groupon over 6 weeks ago and sold 186 of the offer, which was
a standard oil change, tire rotation and vehicle inspection for 19.00.
We have had 55 turned in as of this date and the offer expires on 9-
30-11. Our largest invoice was over 1,500 for a/c work and a new
customer. I felt for the deal to work for our shop we wanted a 40%
conversion rate, if recommended are included we are very close to
conversion rate and it is up to us to follow-up and close the
recommended. Would we do it again maybe, the jury is still out at
this time. Our experience has been positive and we did not have the
issues that many of the articles highlighted. I also have a number of
my friends in Pro-Service that have run Groupons with success. So now
you have our other side of the story.
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