Groupon, have you tried it, what are your thoughts & opinions please?

[glitz and glam]

my hubby thinks this may be a way of me getting my name out there. However i have a few reservations so thought id see if any of you have tried it snd did it get you many through ypur door? did you get any repeat biz from it? would it work mobile or is it more aimed at salons?

 

[M00min]

I think there are some other threads on this on here. I just can't see how most people make any money - unless the Groupon customers are REALLY wowed with your service. For many people Groupon is like a sport or hobby! I have lots of friends who take advantage of these offers, all of whom do it to see what they can get! Most do not have regular beauty treatments anyway, only treating themselves with a Groupon deal once in a while - but have no intention of going back. Two of them got Saks haircuts and colours the other week. They were really impressed - but would never go back there and pay full price.

As for mobiles I'd be interested to hear if anyone's done it. I'm mobile and just think that when you've factored in petrol, travel time etc you're losing even more money than just the treatment time/cost.

Having said that, maybe it's a good way to get your name out there, but I'd be interested to hear what repeat business everyone's got from it. x

 

[karenrose]

I done a groupon deal last month. Sold 150 which was ace. The whole week the phones didnt stop ringing. Good advertising as people were booking in for other treatments, ie shellac and eyelash extensions after seeing my website and didnt buy the offer. And 2 ladies have been in and used the groupon and rebooked for other things. So far Iv done about 20 out of my 150 sold. So when your client is in be extra nice to them and tell them about other products you do and make sure you give them a price list before they leave! So hopefully they will book back in!

Now the bits they dont tell you-

Although they want you to put your offer at 60% of the RRP then you get 50% off that. They dont tell you they also take off VAT of your share. So my RRP was £73 and I sold them for £25. So £12.50 was my share minus 20% VAT and I got a whole £10 per deal!

You also have to wait untill your client comes in with their voucher and send in the voucher codes in bulk and it works out approx a week and a half later you get the money in your bank.

You also cannot feature on any other discounted site like livingsocial, kgbdeals and 5pm.


So you need to weigh up the pros and cons and decide if it will benefit you or not

 

[LauraLush]

Hi Karen,
That was great post. Really helpful and answered a fair few questions I had as I was thinking about doing it. Thanks for that. Xx

 

[fozzyo]

Wow - that's kinda depressing when you look at what you actually get.

Mat

 

[karenrose]

Yes very! I didnt realise they also took of VAT till I got my first payment notification by email!
But it has been good for me. The advertising point of view was great! Especially getting all these other bookings just from people seeing my website on groupon. Over night I got another 2 emails and 1 text asking to book in as they got my details of the groupon email. And without my details going out to all these people I wouldnt have these clients.
So these extra clients from groupon plus the rebooks as making up for what I have lost in the deal itself.
One client booked in for 4 different days for different things plus hair appoinements and she hasnt used her groupon offer yet. So her alone has been a great addition to my clientelle. Plus we got a hair client out of her coming in twice a week for a blowdry!

Like I said, each person is different so you need to look at all the pro's and the con's that I have mentioned and everyone else from the other thread. Then decide if its something you want to take a gamble on.
I wouldnt say its good for large well established busy salons if you are always busy. As when are you going to fit all these cheaper appointments in? But for sole traders or small quieter salons its really good!
I do the beauty myself in the salon and although Im fairly busy it worked out really well for me.
:green:

 

[Sarah 38]

Silly question- do you pay any fees to have an offer with them? Can mobile or home salons take part?

Thanks

Sarah

 

[mac72]

Groupon is advertising and marketing. That's how you have to look at it. Before you go ahead look at the true price, the cost of your time for offering these treatments. You'll probably not make money out of the Groupon promotion, however look at the advertising you get, verses the feed back you would get from say a newspaper ad, which is usually very little and slow.

 

[craigkeane]

I have a meeting today with groupon. Will let you know the out come

Posted with my Droid EO Forum App

 

[AmeliaR]

so 150 people bought the voucher, so unless they actually use the voucher and give it to you, you dont get the money for it?

so what happens if people dont use the voucher after it expires? who gets the money?

oh and also how do you get on there website? it it somthing you can do online? as some one above said they was having a meeting? x

 

[the-lakes]

All I know is that a local salon to me went with the Groupon thing and asked them to limit it to 200 clients. They didnt do that she has ended up with over 600 people wanting treatments over 3 months and there is only two of them work there, one of which is part time! So do watch out for that.

 

[karenrose]

Silly question- do you pay any fees to have an offer with them? Can mobile or home salons take part?

Thanks

Sarah

No fees up front, they take 50% of the cost.
Yes anybody can take part. I wouldnt if I was mobile though, you will end up making nothing when you take into account your petrol and parking costs. Then you might get people from about 100 miles away buying it. When they call you up to use the voucher you cant say no to them.

 

[~Jenny~]

so 150 people bought the voucher, so unless they actually use the voucher and give it to you, you dont get the money for it?

so what happens if people dont use the voucher after it expires? who gets the money?

x

That's a very interesting point, I'd like to find the answer to that question....

 

[craigkeane]

I had a meeting with them today and kbg i was intending to offer singled packages. But when we done the math i would get £4 from each sale!! So we made up a party pamper package which would make a little profit after covering wages and products. Groupon take 40% i keep 60. Kbg only keep 35%. Groupon you sign a 2 yr contact not to go and advertise with similar companys. But kbg only keep there contract for 2 months after the deal has finished. So Im going to go with kbg then Groupon!


Craig Keane
www.hculture.co.uk

 

[karenrose]

That's a very interesting point, I'd like to find the answer to that question....

Client buys voucher, client uses voucher, you send voucher to groupon, they pay you.
So if 150 were sold and only 100 used their voucher in the time limit you lose out of the other 50 people's money.
If they come to you after the voucher has expired you cant accept them as groupon wont pay you

 

[craigkeane]

Groupon - you claim the money as you go along. Vouchers that are not claimed money is kept by Groupon

Kbs - they send you the full amount in one go. Clients who don't book don't get a refund and you keep he money


Craig Keane
www.hculture.co.uk

 

[AmeliaR]

so really KBS sounds like a better one but groupon is more popular!

because i bet lots of people buy the vouchers and i bet half of them dont use them so groupon get the bloody money! i think KBS works out better for the person donig the deal! hmmm xx

 

[AmeliaR]

Also (sorry) How do you place an ad? do you have to ring them or does someone come to you or can you do it online? x

 

[craigkeane]

You go on Groupon and email them your interest to advertise and they get a local rep to contact you! Same applies with the other companys. Why not do an offer with both. But Groupon last! Are you mobile other salon based?


Craig Keane
www.hculture.co.uk

 

[glitz and glam]

Great to hear what you all think. I guess being mobile id be lucky to cover costs but as my huby said so many people will see my company details which would be a great way to get it out there.
Have any of you had repeat clients from it? that would be my main aim but i feel that people use it as a budgeting site to make those luxury that are hard to get with the recession possible,but aty expense? hmm still not sure.
Do you have a link to the other company id be interested to compare the two.

Posted with my Droid EO Forum App