Should I give customers Groupon price without them purchasing the voucher?

[Hazel1981]

Hi
I am currently running a Groupon and wowcher offer.

I have a few people wanting to come in and just pay the Groupon price without purchasing the voucher.

Even though this would be great for me, I don't think that this complies with the Groupon terms and conditions, if I did this for everyone Groupon wouldn't make a profit.

When I tell customers they must purchase a voucher or pay full price in store without one they tend not to contact me again, therefore I'm losing potential customers.

Am I doing the right thing?

 

[AcidPerm]

I wouldn't lose sleep over it, if I were you.
If they can't even be bothered to go online to purchase a voucher, they're highly unlikely to ever pay for a full price treatment.
I'm not a fan of Groupon type offers for building a sustainable business as people who chase Groupon deals rarely become regular clients.

If you're offering a fairly unique service then perhaps consider running an introductory offer/taster session to tempt them to try you out?

 

[Hazel1981]

I wouldn't lose sleep over it, if I were you.
If they can't even be bothered to go online to purchase a voucher, they're highly unlikely to ever pay for a full price treatment.
I'm not a fan of Groupon type offers for building a sustainable business as people who chase Groupon deals rarely become regular clients.

If you're offering a fairly unique service then perhaps consider running an introductory offer/taster session to tempt them to try you out?

Thanks for your reply

You're right

They should buy the voucher and if not they can come in and pay full price.

 

[Carlalouise]

Personally I would let them pay the Groupon price. If you are running a deal with Groupon you know they are a rip off, never used them myself but I wouldn't lose no sleep cutting them out and taking the money!

 

[alexx]

Hazel, what is the percentage you need to pay them if you don't mind me asking?
And is there any flat fee?

Thank you x

 

[Rachael.V]

Out of interest, how many of your Groupon customers do you convert to long-term clients?

 

[KrisKross]

These potential clients are doing you a favour, surely?

The client can pay you the Groupon price direct and you can make £x, or you can make them buy the voucher and make £x minus the 50% or more on the already discounted treatment that you have to pay to Groupon.

I doubt Groupon give a hoot about you making a profit, very nice of you to worry about their profits though [emoji23]

I don't use Groupon - I have once as a buyer and was bombarded with hundreds of emails a week, can't stand it... but if I did, then I would do exactly as these clients are doing. No skin off my nose whether I pay Groupon or you directly. I might think you were being difficult by sending me away to purchase a voucher though and probably wouldn't bother after that.

 

[KrisKross]

Hazel, what is the percentage you need to pay them if you don't mind me asking?
And is there any flat fee?

Thank you x

To sell via Groupon you have to heavily discount your treatment, by up to 60% depending on the usual standard price.

Then, Groupon take their cut of up to 60%.

So for example, if you had a £20 treatment, they would make you sell it for £11, then out of that they'd take £6.

So you end up doing a £20 treatment for £5.

Then you obviously need to minus your treatment costs, overheads, etc...

 

[AcidPerm]

These potential clients are doing you a favour, surely? The client can pay you the Groupon price direct and you can make £x, or you can make them buy the voucher and make £x minus the 50% or more on the already discounted treatment that you have to pay to Groupon.

How are they doing the OP a favour?
Working for peanuts for clients who aren't likely to become regular customers is a mugs game.

 

[KrisKross]

How are they doing the OP a favour?
Working for peanuts for clients who aren't likely to become regular customers is a mugs game.

I agree - Groupon is a mugs game.

However if that's the game the OP has chosen to play then of course the clients are doing her a favour by bypassing Groupon.

The client gets the cheap treatment which they're going to get anyway, and the OP doesn't have to give half of her (non) profit away to Groupon.

 

[Hazel1981]

Out of interest, how many of your Groupon customers do you convert to long-term clients?

Hi
So far I have had one Groupon client rebook but then she cancelled her appointment.

I have heard that it is quite common for Groupon customers to rebook but then not keep the full price appointment.

So far I have just had customers hungry for a deal.

I was hoping to convert them, no matter how much they say they loved the treatment and that it was the best etc, the price is still something they are not willing to pay.

 

[Rachael.V]

Hi
So far I have had one Groupon client rebook but then she cancelled her appointment.

I have heard that it is quite common for Groupon customers to rebook but then not keep the full price appointment.

So far I have just had customers hungry for a deal.

I was hoping to convert them, no matter how much they say they loved the treatment and that it was the best etc, the price is still something they are not willing to pay.

I had heard similar so was interested to hear if it was the case. Deal chasers I think unfortunately, I would put some money into offering your existing clients an incentive to recommend you to their friends. They will probably be much better customers to gain. If you think of what you are discounting for groupon but not getting anything out of it long term might be money better spent

 

[pinknsparkly]

Groupon clients are generally not willing to return and spend more however I have a few who started out as Groupon clients and collectively they now spend about £2500 in my salon every month ( we don't do Groupon any more and haven't for a few years) these ladies kept returning and now have all sorts done paying full price. However I think it's because my voucher price was £100 for Spmu so maybe your £10 nail clients may be different.....