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m5online
07-29-2010, 08:00 PM
Has anyone ever used groupon as a source of advertising? It seems like an attractive way to get quick business, but I fear that you'd get overwhelmed if you are a small or one man shop.

kagman
07-29-2010, 09:22 PM
WOW.. Nice .. That is a great site. I mean its great to get new customers really quick. But now how effective is this website? What is the charge for posting there? I can understand about getting overwhelmed but if you schedule everyone over a period of a few days its still a win win situation for everyone. I might have to contact these people....

THANK YOU!!! :)

m5online
07-29-2010, 09:34 PM
It's a pretty cool site, and it's getting more and more popular. So it works basically like this.

You setup a "deal" with groupon, which is like a gift certificate. But this is supposed to be a good deal, so lets say you offer a flat rate virus cleaning and machine tune up for say $100.. You'd offer a 'groupon' for $50 (or some other major discount), and offer X amount available to buy. You'll need to meet a certain quota of sales by the end of the day or all the ones that sold become invalid.

Groupon helps you with your ad, sets it all up, they do everything for no upfront fee's, just a percentage of the gross sales.

I see groupons for my area daily and some are just a few dozen, and some are selling thousands. I can just imagine having a groupon for my business and selling 200 "system tune ups". it would take me weeks and possibly months to get to them all, and possibly piss of the people who'd be at the tail end...

I throw this idea out there because I saw a groupon for another local shop in my area who had a daily groupon. They offered a virus cleaning and system tuneup for $45, and by the end of the day they had sold close to 1000 of them.

kagman
07-29-2010, 09:43 PM
I am signing up.... lol... i saw the business site and its wow. The videos claim that if you dont get customers then you dont own them anything...

I could marry you M5......... lol.....

m5online
07-29-2010, 09:45 PM
I could marry you M5......... lol.....

Don't think my wife would appreciate that :-). But if using them works out for you, please let me know your experience.

kagman
07-29-2010, 09:51 PM
Tell the wife that sharing is a good thing lol....

Its a crazy idea. The customers pay for the service upfront and the money is then sent to you once groupon takes their cut... Even if you give them 20% (for example) its still not a bad deal. I will be sending them an email tonight.. Need to talk it over with my other half..

WOW......

cmonova
07-30-2010, 12:05 AM
I know Fresno is a rather large area but I would call the guy that had the "They offered a virus cleaning and system tuneup for $45, and by the end of the day they had sold close to 1000 of them.", and ask him exactly how well it worked out for him. Is he doing it again? They claim something like 97% of the people continue advertising on it.

I checked the area here around D.C. and only about 20 or so ads, not too many for this big an area.

Mushin
07-30-2010, 12:58 AM
Well the cat is out of the bag. I recently made a post about a marketing company that guarentees payment and customers.

Groupon is indeed the company that I was talking about.

kagman
07-30-2010, 01:49 AM
Well the cat is out of the bag. I recently made a post about a marketing company that guarentees payment and customers.

Groupon is indeed the company that I was talking about.

LOL i knew it... I even told M5 in a PM about you and figured you where talking about this..

I find it interesting that M5 posted the company name and Mushin did not.

Mushin
07-30-2010, 02:00 AM
LOL i knew it... I even told M5 in a PM about you and figured you where talking about this..

I find it interesting that M5 posted the company name and Mushin did not.

I'll be honest. There are many things I share on this form but one thing I talk about quite often is maintaining a competitive advantage and there are some people on this form that I see as being in my neck of the woods. So... I will gladly talk business stratigies but when it comes to specifics I will not spell out the "How".

I get PMs and e-mails from technicians from all over asking how we are able to offer our 1 Year Service Solutions, How they work... How much we make... How many we sell... and on and on.

Again I am not against sharing but I do encourage everyon to be careful with their trade secrests or what might be a trade secret. Especially if it means being first to market.

If you come up with the 100% sure fire way to stop viruses I would hope that you would not tell the world if you are in business as a Computer Service Company.

mhelpdesk
07-30-2010, 02:12 AM
I just wanted to add to this. When you offer your service on Groupon, you are essentially paying for their mailing list. Groupon doesn't necessarily do additional advertising for you. Instead, they email blast their list with your offering.

The good news is that it works. But before you jump on this, there are a couple things you need to consider.

A. Be prepared. Be very prepared. Groupon has a huge mailing list, and if your offer is attractive, be prepared to make good on your offer. It's not uncommon for vendors to get overwhelmed and overbooked.

B. Be prepared to take a loss or break even. You don't offer a groupon to make make money. Which leads to C.

C. You use Groupon to acquire new leads. If your offer is executed and you end up paying up, make sure your customer service exceeds all expectations. You will have wasted your money and time if you can't get the customer back in your shop for a second, third, or even forth time. You make your money on the next visit, NOT the first.

Example: I know a group of friends who got a groupon for a restaurant. Long story short, they redeemed their groupon and the food was horrible. Needless to say, they will never go back. This restaurant more than likely took a loss for the offer, and didn't gain any long-term business.

Don't make their mistake.

kagman
07-30-2010, 04:21 AM
So does this mean that one should not use groupon if they are just the only person in the business, like most of us?

And if you give a discount does this mean that you cannot make money on the first attempt with groupon?

It sounds like a great idea, but I also agree that one needs to research this carefully. Hey even getting 100 new customers would be worth it. What do you guys think... ?

Elemdee
07-30-2010, 05:27 AM
So does this mean that one should not use groupon if they are just the only person in the business, like most of us?

And if you give a discount does this mean that you cannot make money on the first attempt with groupon?

It sounds like a great idea, but I also agree that one needs to research this carefully. Hey even getting 100 new customers would be worth it. What do you guys think... ?

I suppose if you're a 'one man shop' you'd need to have a plan in place in case you get flooded with responses....and have backup help from others you know who could come in and work beside you to get through the work. The way you're set up now, Jose, it would be a logistical nightmare unless you could get people to bring and drop off their PC's to you.

Any idea how much % Groupon takes on these deals? Personally I would advertise a price that isn't sooo dirt cheap that it attracts thousands and cuts the profit down to peanuts, since at this point it is a new avenue to get business and I haven't seen my industry represented in advertising. It mostly seems to be spas with massages so far.

cmonova
07-30-2010, 12:09 PM
If you do a search in google for groupon computer repair or groupon pc tune up etc you will find some ads that people have ran.

You will also find some that say "did not meet quota" or words to that effect. Apparently you can specify something like you require "50" to be bought in order for the coupon to actually be redeemed.

I know in the example it was said the guy got like what 1,000 jobs...but in reality I think that is "not" the norm if you look around.

SThompson86
07-30-2010, 12:49 PM
I dont see this working in my area, for per what I have already done in the marketing avenue I am finding my area to be geared more towards having a physical store front.

I am going to give this a try as long as its free (Have not looked into it much) when I get back from my hooneymoon.

Hercomputers
07-30-2010, 01:03 PM
Wow! I'm going to look into this too! Thanks for sharing!

mhelpdesk
07-30-2010, 01:12 PM
So does this mean that one should not use groupon if they are just the only person in the business, like most of us?

And if you give a discount does this mean that you cannot make money on the first attempt with groupon?

It sounds like a great idea, but I also agree that one needs to research this carefully. Hey even getting 100 new customers would be worth it. What do you guys think... ?

I'm not saying you shouldn't try it. You just need to be prepared. If you are a one man shop, just make sure you can handle the volume if the deal is executed.

Why won't you make any money? It is a combination of two things.

1. Your deal has to be super attractive in order for people to sign up. If your price isn't attractive don't bother wasting your time. The whole point is to get X amount of people on board.

2. The fact that Groupon takes 50% for their cut, combined with your super discounted price and you are left either breaking even or in most cases a loss.

Again, don't think of this as a way to generate revenue on the first shot. Think of it as a way to generate new long-term relationships with customers you otherwise would have never met.

Bottom line is that there is indeed a risk. But if you are well prepared, and can deliver exceptional service, the payoff for your business can be huge.

donte10
07-30-2010, 01:15 PM
This sounds awesome! I'm going to have to give it a try, all thought my city is not listed. The next biggest city about 40 minutes away is. If people would be willing to drop off their computer at my shop, that wouldn't be a problem.

4ycr
07-30-2010, 01:20 PM
I have just sent them an email asking for more information. The nearest city is about 20 mins drive away. I would not mind as long as I can get a few on the same day but I will wait and see if it worth it.

kagman
07-30-2010, 02:21 PM
I also filled out the form online for them to contact me. No harm in talking with them, asking questions. Yes one does need to be ready for this if it works out. Having backup would be key to this.

mraikes
07-30-2010, 03:46 PM
I signed up for the Groupon email list, curious about what kind of things are being offered in my area.

Today, I can get a "Brazilian Blowout" for just $99 (a $250 value!!!). Unfortunately a Brazilian Blowout isn't at all like I imagined. :rolleyes: But if anyone in the Albuquerque area is thinking of changing their hair style, I'll forward you the offer.

Just FYI, the email from Groupon was pretty well done. Quite wordy & humorous - similar to WOOT.com's product descriptions.

Peaceful
07-30-2010, 05:20 PM
Before signing on with these groupon guys, folks may wanna read these customer reviews here.. http://www.sitejabber.com/reviews/www.groupon.com

Lefty
07-30-2010, 05:45 PM
Ouch! It sounded to good to be true. I suppose if the numbers supported the use of Groupon, why not?

Mushin
07-30-2010, 06:18 PM
Keep in mind that many of the Issues with Groupon are actualy issues with the business. As an example... I have been researching this quite a bit and nearaly every big issue comes from the fact that the customer is having trouble using the coupon.

Some people have complained that they could not use a coupon during ahppy hours becasue it was not valid with other discounts. Others have complained about not being able to contact the business to schedule service or appointments.

First: As has already been mentioned you have to be prepared IF you are going to go live with a groupon. Have a process in place (For us Technicinas) for scheduleing appointments, calling people back, resolving questions. Be proactive.

Second: try to keep your disclaimers to a minimum. People will usualy ignore (Either on Purpose, or by lack of reading) the expection you place on use of a coupon. If you keep it seet and simple people are more likely to buy and more likely ply by the rules.

Thrid: If you go live be prepared to answer questions about the deal before people buy. I am sure that the day the deal goes live you will get phone calls about the deal. If you read the groupon forums for you city you will find that people can be a bit lapse in thought process with regard to the deal.

One question I remember reading was "Can I buy more than one Groupon to XYZ Company to give as a gift? Funny thing was the deal said "Strict Limit of 1 Per Person. Can not be Given as a Gift." The person proceeeded with but I want to give it to someone else how can I buy another? This went on in the form for a bit. The final answer was "Tell them about the deal and have them buy it" but they proceeded but "I want to give it as a gift."

4ycr
07-30-2010, 08:59 PM
I got a phone call from the UK branch and they don't do computer repairs, apparently they only do work with social companies

callthatgirl
08-01-2010, 04:36 PM
I applied with Groupon this past spring, they turned me down. I am not sure why, but something to the order of "you're not in our services area". So it appears computer repair isn't their thing.

My client who owns a botox business just did groupon and she is BOMBED with calls/clients. She faired well.

Lefty
08-01-2010, 04:40 PM
Same here. The representative told me they deal with businesses in a particular niche that doesn't include computer repair shops.

Peaceful
08-01-2010, 04:51 PM
I was curious how a free system tuneup would fly with these guys, probably something like a lead balloon.:rolleyes:

kagman
08-01-2010, 07:04 PM
Well I spoke then one of there reps. Told them to call me back in 2 weeks because I wanted time to think this over. They did tell me that I should sign up on yelp and other sites, get some reviews, etc etc. They had no problems wanting me to sign up with them if i choose to.

LukeD
08-05-2010, 12:22 AM
It's a pretty cool site, and it's getting more and more popular. So it works basically like this.

You setup a "deal" with groupon, which is like a gift certificate. But this is supposed to be a good deal, so lets say you offer a flat rate virus cleaning and machine tune up for say $100.. You'd offer a 'groupon' for $50 (or some other major discount), and offer X amount available to buy. You'll need to meet a certain quota of sales by the end of the day or all the ones that sold become invalid.

Groupon helps you with your ad, sets it all up, they do everything for no upfront fee's, just a percentage of the gross sales.

I see groupons for my area daily and some are just a few dozen, and some are selling thousands. I can just imagine having a groupon for my business and selling 200 "system tune ups". it would take me weeks and possibly months to get to them all, and possibly piss of the people who'd be at the tail end...

I throw this idea out there because I saw a groupon for another local shop in my area who had a daily groupon. They offered a virus cleaning and system tuneup for $45, and by the end of the day they had sold close to 1000 of them.

I believe it was hirethegeeks.com that ran that groupon and they only sold like 40ish, $60 diag for $30, groupon kept 50%, it's not even on the fresno groupon page anymore because they sold so few of them.

gbonilla
08-06-2010, 01:37 AM
I havent done any research on livingsocial.com but it seems to be fairly similar to groupon and judging from a few of their deals like house cleaning for $49, it seems as though computer repair might be accepted.

Just throwing it out there, it might be something to look into.

cmonova
10-19-2010, 03:15 PM
Maybe Groupon and the others are not such a great deal....

http://www.marketingpilgrim.com/2010/10/forty-percent-of-groupon-merchants-say-never-again.html

and

http://www.joplinglobe.com/dailybusiness/x596126483/Businesses-may-find-Groupon-more-a-burden-than-a-boost