Groupon

[kevin555]

Evesoffspring

Was it a large item? Many people operate as dropshippers for this type of product. Cuts cost of to and fro shipping - from wholesaler to retailer to customer.

They don't stock the items but sell them for the wholesaler - they get a cut/wholesaler gets a cut.

 

[Bambooshoot]

I wrote on this thread previously saying I've had no problems with anything I've bought from Groupon, but I must have jinxed it I bought some hair straighteners - these are them (but they were for Sheffield, not Middlesbrough). I should have researched first as it seems that the supplier (O Spa London) isn't known for providing the best service. People have complained about not receiving their straighteners in the 28 days promised, but I've not even got past the 'enter voucher code here' stage and it says that the voucher doesn't exist This sucks!! I'll keep persevering though

 

[Bambooshoot]

When a merchant decides to place their products on the Groupon website they of course must evaluate the opportunity cost of such an investment. Basically if the cost of acquiring the customer is less than the lifetime value of the customer then it's worth it. The merchant must not treat the Groupon customer as a discount client. They must over perform and prove themselves to the client. That is how they get the value of posting their product for such a reduced rate.

Also the site is offering luxury service goods (restaurants, spas, etc...) giving people the opportunity to veer away from their standard go to places. If you can make your business a new favorite of theirs then it's worth the cost.

 

[SillyJokes]

Tis is what I've always thought of groupon

http://www.bbc.co.uk/news/business-15574954

 

[kevin555]

I was a subscriber to Groupon and KGB emails for research purposes - basically to see if companies like mine were doing it and the type of offers that might work.

A year on and my research has concluded that these sites do not work for 'traditional' retailers but are clearly aimed at local businesses offering service type products where markup / price is less clearly defined.

Therefore, I have stopped subscribing. Am I alone in not wanting a spa treatment?

 

[LicensedToTrade]

I was a subscriber to Groupon and KGB emails for research purposes - basically to see if companies like mine were doing it and the type of offers that might work.

A year on and my research has concluded that these sites do not work for 'traditional' retailers but are clearly aimed at local businesses offering service type products where markup / price is less clearly defined.

Therefore, I have stopped subscribing. Am I alone in not wanting a spa treatment?

Definition of Irony: Someone who thinks that the Groupon model of daily deals won't work for their business at the same time as promoting a 'Deal of the Day' in their signature

 

[kevin555]

Just because I don't give Groupon et al £50 each time I sell one of my Daily Deals doesn't mean it ain't working.

There's the instant exposure to be gained. I get clickthroughs to check it out, there's also the end of the aisle / storefront deal approach that subliminally tells people that our shop isn't the most expensive etc. There's the twitter / social media / newsletter marketing with calls to action.

And all for the princely sum of nothing. No tie-ins, no expensive mistakes. Groupon contacted me summer 2010 to do a promotion but once I did the maths I knew we wouldn't make money from THEIR MODEL.

That's not to say we don't make any money from OUR MODEL. You see it's not so ironic after all.

 

[LicensedToTrade]

Definition of Sense of Humour: No, nevermind... I shouldn't

 

[david.duncan]

http://www.bbc.co.uk/news/business-15574954

 

[LicensedToTrade]

http://www.bbc.co.uk/news/business-15574954

I think you've been beaten to it... http://www.ukbusinessforums.co.uk/forums/showpost.php?p=1818601&postcount=44

 

[SillyJokes]

Groupon boast of how many people have signed up for deals and who wouldn't want a bargain?

But the 'business end', so to speak, are the small businesses who are prepared to pay for and support Groupon and I think they are working through these businesses at a huge rate of knots because you only fall for that once. Are the customer sign ups matched by the number of businesses signing up?

New businesses are particularly suseptable to anyone who promises them increased traffic, awareness, business etc and lots of promotional companies deliberately prey on them. They can be spotted by their desparate attempts to use adwords.

 

[kevin555]

The thing about Groupon is that it is basically an online voucher site but selling mostly offline services, i.e. high street restaurants, spa treatments.

Surely this model is way overvalued. Unless the company can diversify into an online concept

It's the Emperor's New Clothes all over again - internet bubble anyone??

 

[Goalseeker]

What amazes me is the number of small businesses who are very guilty of throwing money at Groupon and living social as the two biggest, and doing nothing to retain clients once they visit their premises with a voucher in hand.

There is a way to make the Groupon and Living Social schemes pay but few business avail themselves of this free resource.

 

[LicensedToTrade]

What amazes me is the number of small businesses who are very guilty of throwing money at Groupon and living social as the two biggest, and doing nothing to retain clients once they visit their premises with a voucher in hand.

There is a way to make the Groupon and Living Social schemes pay but few business avail themselves of this free resource.

Groupon isn't free...

 

[kevin555]

Did he mean there was a free booklet to explain how to make money off Groupon.

Hey that's a spammy info website idea. How To Win At Groupon. When I get a minute I'll write that one - shouldn't take long...

 

[Psl]

Interesting article that begins...Groupon is rolling out personalization features that will help pinpoint subscribers who are most likely to become a small business’s repeat customers. The features — including an option that allows some users to purchase deals after they’ve expired — will be live in all of Groupon’s 175 North American markets starting Wednesday.

http://mashable.com/2011/11/09/groupon-personalization-features/

 

[Goalseeker]

Groupon isn't free...

Did I say Groupon was free ...-No-... I said there were free ways to take advantage of the clients who present groupon vouchers to have them return to your business time after time. groupon is expensive especially if the leads that comein to a business are wasted.

 

[Goalseeker]

Did he mean there was a free booklet to explain how to make money off Groupon.

Hey that's a spammy info website idea. How To Win At Groupon. When I get a minute I'll write that one - shouldn't take long...

No Kevin I did not mean that there was a free booklet how to make money off Groupon. Any good business person knows as I am sure most on this forum know that one should always be looking out to expand marketing exercises not just take what comes . If you work it out most business LOSE money by offering Groupon type marketing.

 

[generation4business]

Just a quick one from me.
I have recently added groupon as part of an advertising package that I can offer but I have never proposed it as part of the package as I personally wanted to read opinions like this thread to see the feedback and thoughts of it.
I have been asked to include this but never brought it up unless asked so this has been a really useful thread, cheers guys and I will keep reading

 

[Borobar]

Groupon boast of how many people have signed up for deals and who wouldn't want a bargain?

But the 'business end', so to speak, are the small businesses who are prepared to pay for and support Groupon and I think they are working through these businesses at a huge rate of knots because you only fall for that once. Are the customer sign ups matched by the number of businesses signing up?

New businesses are particularly suseptable to anyone who promises them increased traffic, awareness, business etc and lots of promotional companies deliberately prey on them. They can be spotted by their desparate attempts to use adwords.

yeah i see most people only use once which annoys me as wrote to groupon loads about running features and keep getting ignored... their customer service is very poor and this is at the SELLING stage so ive backed out now

 

[LicensedToTrade]

Did I say Groupon was free ...-No-...

You aren't my nephew are you? You talk like he does.

 

[alexduduta]

Hi,

I'm interested in hearing what people’s thoughts or experiences are of "the words fastest growing company"....

As far as I can tell Groupon can generate a lot of footfall for the retail industry but how can it be profitable (for the retailer) with such heavy discounting.

Obviously it’s just another channel in the marketing mix of drumming up interest and would be advantages for clearing stock, but for winning new customers in the long run I'm not too sure.

Interested in your thoughts.

Groupon is a good way now,daily deals help it. Group-buy marketing is now a mainly marketing methods for most international b2c companies. But problem are ahead during the group-buy business developing.

 

[PhiliDV]

Hi there everyone.

I've just joined this site as I'm looking to set up a small online jewellery business.

Is Groupon a good idea for a retail based business, as opposed to a service/restaurant based one?

I've been reading through some of the Groupon based posts and was wondering how a jewellery based business like mine would do?

Any info/ideas would be greatly appreciated.

 

[Blade Printers]

Spoken to a few restaurants that use it and they hate it

If they hate it - why do they keep using it?

 

[quikshop]

If they hate it - why do they keep using it?

Market dominance. Amazon charge hideous commissions but retailers keep selling through it, eBay have broken their community system by enforcing positive feedback but retailers keep selling through it.

For as long as Groupon has high usage even if it'll never be a profitable business, retailers need to react to where their customers go... a bit like wolves tracking the deer across the mountains

 

[alexduduta]

I can only say Groupon get a lot from their partners and the customers.

First, Groupon ask a high commission rate from the suppliers of the deals.

Second, the will first get the money from the customers, but they won't pay the money to cooperatior, they will keep the money for at least 30 days.With the money, in 30 days, the bank interest will be a large number of money.

Third,A way to collect customer informations, and then they can sell this kind information or themself can use this infrmation to send EDM letters. And so on.

Forth, the samples, they usually ask for free samples

Anyhow, group buying way is a good way, but this way is not equal to the suppliers now.
If the price of your products are not competitive to most of the suppliers, you will be kicked out.

And one want to discuss on this, you can contact me on skype:alexwoodude

 

[proofpositive]

From a consumer's point of view, i tend not to go for the product offers because of the horror stories I have heard about delays, and with regard to the services I have found that the company is overrun and therefore appears to be low quality. I tend to have the perception that the business advertising on Groupon is struggling in some way, and therefore tend not to bother with them any more - preferring business I perceive to be thriving ( with the assumption that it means they are the better at what they do!). I wonder if Groupon attracts more "offer hoppers" rather than serious longer term clients/ customers?

 

[Nord20]

From our experience (service based), we knew we had the capacity and so whilst we had a (very) few regular customers get annoyed at busier classes, it wasn't much of an issue.

There are definitely a lot of bargain hunters who will try to milk you out of everything they can for as little as possible, but you just manage them. For us, it got a whole load of new customers through the door and was always intended to be just that - introduce new customers to the business and hope to convert as many as possible to regulars. This is why it works better for services than for products, as generally there is little repeat custom for specific products sold through Groupon. We did get a good retention rate from it (more than expected).

I would NOT recommend it for Jewellery, unless you have a huge amount of stock you want to shift at little more than cost.

 

[Alpha]

You would be far better putting it onto the local deals of someone like myvouchercodes. At least you control the amount you wish to give eg. what discount and only pay for people that use the voucher.

Far better marketing proposition than Groupon (Also would work far better for restaurants as well)