Opinions on putting business on Groupon.

[brondondolon]

Hey guys. Its been a while. Any way I am considering putting my business on Groupon. I have noticed that a bunch of people in my area use it and to my disbelief there are no auto detailers on it where i live. So i would be the only detailer on Groupon in my area. What are opinions on groupon for those who have used it. Possibly some pointers if you have some because in comparison my prices for my service is already dirt cheap due to my location so i dont wanna go out and do a full on detail and only pocket 20 bucks after 6 hours of work if you know what i mean. But i do see it as a great way to get my name out there.

[Kamakaz1961]

If it was me in a nutshell...NO!! The way Groupon works is this:

1. What do you charge for the lowest detail (lets say $60 for the math purpose) $60

2. Groupon wants you to cut that $60 in 1/2 so you charge only $30. (Your Loss Leader or Lead in)

3. Groupon takes 1/2 of the $30 so you make only $15.

4. Groupon will pay you in 30 or 60 days the amount of Groupon customers used.

5. From now on...you have ONLY customers that want the lowest price and are extremely cheap!!

IMO that does not make good business sense to me.

Why do I know? I almost did that and those were the numbers used for my business about 4 years ago. The Groupon customers are only looking for the best deals...period!!

Stay away from Groupon. Since you are in a physical type business you will be killing yourself for "Loss Leader" Business. Not worth it!

[Scott@IncrediblyDetailed]

If it was me in a nutshell...NO!! The way Groupon works is this:

1. What do you charge for the lowest detail (lets say $60 for the math purpose) $60

2. Groupon wants you to cut that $60 in 1/2 so you charge only $30. (Your Loss Leader or Lead in)

3. Groupon takes 1/2 of the $30 so you make only $15.

4. Groupon will pay you in 30 or 60 days the amount of Groupon customers used.

5. From now on...you have ONLY customers that want the lowest price and are extremely cheap!!

IMO that does not make good business sense to me.

Why do I know? I almost did that and those were the numbers used for my business about 4 years ago. The Groupon customers are only looking for the best deals...period!!

Stay away from Groupon. Since you are in a physical type business you will be killing yourself for "Loss Leader" Business. Not worth it!

Well...end of thread.

[brondondolon]

Lol yeah that about sums it up haha. I guess im not going to get on groupon. I wonder if i could put my highest priced package on there with the intention that no one will buy it and then use it just so people see my business.

[dcjredline]

The owner of the Pizza Shop I work at did it once...for all the reasons stated she will NEVER do it again. We got TONS of customers from it but they always want to be cheap. More only came because of the coupon than stayed tho too.

[Busy mind]

You have the option to advertise which detail package you're discounting, and how many you're available to do at that price point. I've noticed other detailers will say their detail packaged is valued extremely high so Groupon doesn't take a huge chunk out of their profit.

You can set it up with Groupon to sell 100 "express" type of washes within a 30 day period and they need to be redeemed within 60 days. This is basic stuff that won't zap you of all your valuable time and energy. Some people buy the deal but don't show up. Depending on how bad you want exposure and more business leads, this could be an opportunity to upsell them for future work.
Yes you will be attracting the penny pinchers, but depending on your salesmanship, you can spin it into something profitable.

[Ccrew]

Kamakaz1961 has it down perfectly. Sounds like he's done it before. It's a race to the bottom, at which you're pretty much doing every groupon sale for free. And that's precisely the clientele that it attracts. You think you're going to get a following from it? Only until the next bargain.

[FUNX650]

Don't sully your name and reputation by being a
participant in this type of racket that targets and
casts-about for the bottom-feeders.

{"neither cast ye your pearls before swine,
lest they trample them under their feet,
and turn again and rend you". ~Matthew 7:6}

So many of the (alleged) detailers that do
participate don't really clean the vehicles...they'll just
use the "greasy kid stuff" to make the vehicles shiny.

[ame="http://m.youtube.com/watch?v=C3s284_8JvQ"]Vintage 1950's Hair Product Commercial with Bart Starr and Sam Wade - YouTube[/video]

Again:
Make sure to never be lumped-in with these:
"Grease and Release" detailers.


Bob

[Kamakaz1961]

LMAO Bob!! Where in the hell did you get that video?

[Ebg18t]

We did a Groupon for my wife's business about 2 years ago. The customers that bought the Groupon were extremly demanding. By that I mean: several wanted same day appointments (she books 1-1.5 weeks out), when they showed for their appointments they asked for a list of services beyond what the groupon was for and wanted reduced prices since they had a Groupon, and many were generally disrespectful. Oh and don't expect your usual tips. Groupon shoppers for the most part have no loyalty and will jump from deal to deal.

She only retained one return client from Groupon and that person was a pain in the ass. Always trying to negotiate a cheaper price, her debit/credit card never has enough $ to pay her bill for services. She had the gall last year to call her CC company and do a charge back on my wife because she needed the space on her CC to finish her Christmas shopping after she paid my wife. She was dumb enough to leave a message for my wife Apologizing after we called her, needless to say we had to file fraud charges on her and we haven't seen her since.

So when it comes to Groupon I am not a fan.