Groupon - fighting for it's life

[Baggybear]

Groupon fights for its life as daily deals fade - Yahoo! Finance UK

What do you think about this revelation?
Is it even a revelation or did we all see this coming?

 

[angelina221]

Good. That is all!

 

[vgml]

Hopeful news..

 

[taggyboy]

Love it, especially this comment on there:

"A Raymond James survey of roughly 115 merchants that used daily deals services during the fall found that 39 percent of merchants said they were not likely to run another Groupon promotion over the next couple of years. The top reasons cited were high commission rate and low rate of repeat customers gained through offering a promotion.

The survey also found that 32 percent of the merchants reported losing money on the promotions, and nearly 40 percent said the Groupon offer was less effective than other types of marketing"

 

[catface]

Good. That is all!

:lol:

Totally agree !

 

[Steph86]

I read this too

I actually "signed up" to groupon last week just to have a nosey at what was available near me and... Not much at all-that made me happy

I'm glad it appears to have ran it's course! X

 

[Lynne Baker]

Not a moment too soon.

 

[EmJZ]

I think everyone in this industry just had a BIG sigh of relief!

 

[fozzyo]

A horrible business model and they treat merchants without any respect in my view. They have led to the closure of several small businesses because of their practices.

Daily Deals is not the way to build a business in my view.

 

[SamanthaA123]

A horrible business model and they treat merchants without any respect in my view. They have led to the closure of several small businesses because of their practices.

Daily Deals is not the way to build a business in my view.

Here Here..!!!

 

[Tomme]

Iv always took the stance of beat the Groupon style offers, work out what Groupon would charge a client (they take around 50% of the paid price) then knock off a few pound. Cheaper than if Groupon were to do it and you keep all the money.

About time Groupon died a slow and agonising death after what it has done to so many business's xoxo

 

[LBT]

Woop!

 

[Haylo_Therapies]

Karma!! Let's celebrate :wink2:

 

[Lauz012]

I really don't understand why you all have such a disliking for groupon will somebody please explain

 

[StrawberryAnna]

I think everyone in this industry just had a BIG sigh of relief!

Haha too true! X

 

[shazzawilson]

So what about the other discount groups?
Anyone done others and felt the same?

 

[fozzyo]

I really don't understand why you all have such a disliking for groupon will somebody please explain

Where to start?

I have a treatment clients pay £25 for. Groupon want to sell this to clients for at most £12. By the time you take out commission and VAT I would only be paid £5 for a treatment that I would normally charge £25.

And that £5 I won't get until a month after the client has been. Groupon then won't allow me to limit it to just say 15 or 20 clients, no they want one hundred people to buy it.

But then there is a system failure or they "forget to set the limit" to stop selling more then the 100 vouchers we agreed on.

I now can't use the phone because I have all these people trying to book in for a treatment that I will make a huge loss on. And then I can't book in clients who pay full price. So I end up loosing even more money.

All these people can't book in, so they start to bad mouth me and my salon and demand a refund. But the refund isn't from me its from Groupon. And they don't complain about Groupon to their friends ... they complain about the salon because they have a voucher they paid for but can't use damaging my reputation.

Lets say 80% of those clients manage to book in and have a treatment with me. Of the remaining 20%, baring in mind it is my salon and name they are selling how much money will I see from those vouchers? Oh that's right - nothing.

And of course lets not forget all these clients who paid just £12 for a £25 treatment ... most of them don't want to rebook or come again and pay £25. No they would rather look for the next Groupon, Wowcher, LivingSocial, Gumtree offer and pay less then half price again. Because their dominant buying motive is price, not service, quality, or respecting the salon they get the treatment from.

That is why I don't like Groupon and the like.

 

[marie111]

Where to start?

I have a treatment clients pay £25 for. Groupon want to sell this to clients for at most £12. By the time you take out commission and VAT I would only be paid £5 for a treatment that I would normally charge £25.

And that £5 I won't get until a month after the client has been. Groupon then won't allow me to limit it to just say 15 or 20 clients, no they want one hundred people to buy it.

But then there is a system failure or they "forget to set the limit" to stop selling more then the 100 vouchers we agreed on.

I now can't use the phone because I have all these people trying to book in for a treatment that I will make a huge loss on. And then I can't book in clients who pay full price. So I end up loosing even more money.

All these people can't book in, so they start to bad mouth me and my salon and demand a refund. But the refund isn't from me its from Groupon. And they don't complain about Groupon to their friends ... they complain about the salon because they have a voucher they paid for but can't use damaging my reputation.

Lets say 80% of those clients manage to book in and have a treatment with me. Of the remaining 20%, baring in mind it is my salon and name they are selling how much money will I see from those vouchers? Oh that's right - nothing.

And of course lets not forget all these clients who paid just £12 for a £25 treatment ... most of them don't want to rebook or come again and pay £25. No they would rather look for the next Groupon, Wowcher, LivingSocial, Gumtree offer and pay less then half price again. Because their dominant buying motive is price, not service, quality, or respecting the salon they get the treatment from.

That is why I don't like Groupon and the like.

But surely thats your choice whether you take out a deal with groupon, as a business owner myself I wouldn't go near them but i have certainly bought their deals.
If people want to sign up with them and not do their sums first is that not their own fault.

 

[PixieBeauty]

Yes I also think part if the problem is the market has been flooded with cheap deals. There's a hair or beauty deal on there every day & if enough people are exposed to this often enough they will see the whole industry as overpriced.

Ok so maybe occasionally one salon will do their £25 treatment for £12, fab, great deal quick buy it now before it's gone, right? That was the idea when Groupon started. Now there's the same beauty treatment on EVERY DAY, people just bargain hunt & WILL get the impression we are all ripping them off!

That's why a lot of therapists are happy it's going, in the hope we can resume normal service Xx

 

[Tomme]

Yes I also think part if the problem is the market has been flooded with cheap deals. There's a hair or beauty deal on there every day & if enough people are exposed to this often enough they will see the whole industry as overpriced.

Ok so maybe occasionally one salon will do their £25 treatment for £12, fab, great deal quick buy it now before it's gone, right? That was the idea when Groupon started. Now there's the same beauty treatment on EVERY DAY, people just bargain hunt & WILL get the impression we are all ripping them off!

That's why a lot of therapists are happy it's going, in the hope we can resume normal service Xx

This is too true for a salon near me, they are doing at least 2 a month, should be £40 Groupon for £10, even makes me wonder.... Are they over pricing to be able to Groupon for less and get people to think they are getting a good deal?
Iv considered Groupon, setting something stupidly high, such as a conditioning treatment with a blowdry at £80 allowing Groupon to reduce it and make a huge profit compared to if I done the service full price at the price I have it as now xoxo