Groupon type issue-need advice

[callthatgirl]

There are tons of these Groupon type businesses now out there. A bunch in Minneapolis anyway. I have applied with Groupon and they turned me down stating that computer repair is not an "instant purchase" type service. I have to agree, no matter how I sugar coat it, most people only call me when they have a problem that day. Although, I do get many appts, but these are not in the demographic of Groupon I'm sure.

Moving on, I did happen to see one of my competitiors (who is a one man shop) do one, with a "Tune up" special, regular price $135. Sold for $65 if you buy it now. With that price, he gives away the Tune Up for $32.50 as the company takes half usually. (I have to believe he inflated his tune up price for this, $135???)

When you do these instant purchase/buy ads, it's supposed to bring you tons of businesss very quickly...like you got bombed.

I did the math, and I want your opinion. I have the staff to do the tune-ups, we sell ours regular for $75, when we do a sale it's $60. I could go that low ($37.50) for massive marketing exposure (and since I am already out there with social media exposure) it may help...or maybe hurt?

 

[Knightsman]

My experience with doing this:

You get good coverage, but you get CHEAP customers. They are coming to you because they couldnt afford it before.

This sounds bad, as if we are talking bad about the customer, but they then expect everything you do to be cheap, free advice, cheap service on a continual basis.

You might have more success being a more established business, but most of the calls I received were not good business deals, and eventually they stopped calling. (didnt like my normal rate) But theres always a chance you will get a good customer out of it.

 

[callthatgirl]

Here is one thought, my best friend makes tons of money and spends it well. She is far from cheap, but she loves these instant deals for restaurants and spas and stuff. This is the demographic Groupon goes for...the women in the 25-40 range who are corporate brats.

When I blast a computer cleaning sale, I can get 10-20 callers and many... 36% of my clients have called in more than once.

 

[Knightsman]

Here is one thought, my best friend makes tons of money and spends it well. She is far from cheap, but she loves these instant deals for restaurants and spas and stuff. This is the demographic Groupon goes for...the women in the 25-40 range who are corporate brats.

When I blast a computer cleaning sale, I can get 10-20 callers and many... 36% of my clients have called in more than once.

Buy your charging $60 right (sale price)? Thats still more than most "cheap" customers pay. I dont consider someone like your friend a cheap customer, but a bargain hunter. Which IMO are two different things.

I would still try it and see how it goes, if it cant hurt, go for it.

 

[oldtech]

I guess the question for me would be what could you do with that $22.50 that you are not going to receive per new/exisitng customer instead?

That seems like a fairly pricey customer aquisition cost since I tend to agree with Knightman that the clientele you'll be attracting is more to the bottom feeding end of the pool.

 

[ATTech]

I tend to agree that these services aren't really designed for our type of business. I see these more for retail, restaurants, and indulgence services.

 

[myPCTechs]

Be very careful in doing something of this nature. If you get an obscene amount of people that buy your coupon, and then you're not able to fill demand due to lack of manpower, it could actually do more harm to your business than good.

Whatever the special make sure you have staff on hand to quickly service as many people as you expect to buy the deal.

 

[baccart]

Be very careful in doing something of this nature. If you get an obscene amount of people that buy your coupon, and then you're not able to fill demand due to lack of manpower, it could actually do more harm to your business than good.

Whatever the special make sure you have staff on hand to quickly service as many people as you expect to buy the deal.

What harm could it do? You could explain that you have a lot of customers right now (conveys that you are good! and that is why busy), and that you can scheduele them for a later date for the same price!!!!!!!!

 

[Xander]

Just schedule a max of _X_ systems taken in a day to guarantee you won't be overwhelmed and can still handle your regular flow.
It'd be the same as a spa or mechanic saying, "We're booked up until Thursday" and I can't imagine anyone having a problem with that.

 

[kevinjhaag]

What harm could it do? You could explain that you have a lot of customers right now (conveys that you are good! and that is why busy), and that you can scheduele them for a later date for the same price!!!!!!!!

I agree. Their main reason is to get service at discounted price anyways. Anyways, it could be mentioned that they could ready their system by doing a backup, etc..

 

[joydivision]

What harm could it do? You could explain that you have a lot of customers right now (conveys that you are good! and that is why busy), and that you can scheduele them for a later date for the same price!!!!!!!!

The harm is you have to buy the service before a business provides it. So if you spent £60 on a tuneup and then got told we can't do it for 2 weeks it would look very bad.

I have thought about Groupon in the past but there is just no way it is worth the risk. I would rather a much more steady way of bringing in new clients.

 

[mhelpdesk]

Lisa,

Email me ASAP. I want to solve this problem immediately. I've got something ready to go, and even have opt-ins to contact. You know where I'm at so let's get this off the ground.

Vincent.

There are tons of these Groupon type businesses now out there. A bunch in Minneapolis anyway. I have applied with Groupon and they turned me down stating that computer repair is not an "instant purchase" type service. I have to agree, no matter how I sugar coat it, most people only call me when they have a problem that day. Although, I do get many appts, but these are not in the demographic of Groupon I'm sure.

Moving on, I did happen to see one of my competitiors (who is a one man shop) do one, with a "Tune up" special, regular price $135. Sold for $65 if you buy it now. With that price, he gives away the Tune Up for $32.50 as the company takes half usually. (I have to believe he inflated his tune up price for this, $135???)

When you do these instant purchase/buy ads, it's supposed to bring you tons of businesss very quickly...like you got bombed.

I did the math, and I want your opinion. I have the staff to do the tune-ups, we sell ours regular for $75, when we do a sale it's $60. I could go that low ($37.50) for massive marketing exposure (and since I am already out there with social media exposure) it may help...or maybe hurt?

 

[kagman]

Remember the hole point of Groupon and other companies like them is to get you new customers. Then you are counting on those people to come back. This is not about making money, well Groupon makes the money but you dont. Now you are hoping that once you sell those coupons that a certain percentage will use you again. However there is no guarantee that you will get any repeat customers at all. This is just a one time deal..For a service type of business this is not worth it.

Now if you are a type of business that that sell products and have a store front then Groupon can work for you. While the customer is at your store you can then try to sell them other stuff while they are there. Chances are they might come back for more. But for a computer service /repair its not worth the time or effort if you ask me.

 

[ComputerStop]

Groupon approached me - said they do lots of computer companies, so I am not sure why they turned you down.

I looked into doing a tune-up, and a whole house carpet cleaning (I own a carpet cleaning company) via groupon, seperate coupons of course. I talked to the sales girl who was extremely nice and helpful and I requested that she send me the listings that some other computer repair places/carpet cleaners did so I could get a look and feel of how it could be. I called every single one of the companies that she emailed me, about 8 computer companies and about 15 carpet cleaners. The results were horrific - 1 computer place said it was O.K. and the others said they would never do it again (one said hell no and informed me he wrote a blog about it). Carpet cleaners that I called gave the same response - 3 of them said it was O.K. and the rest said awful.


I eventually decided to not go with it - everyone's general explanations where horrible cheap customers that never returned.

 

[bosanci28]

can someone explain how this groupon works?

let say i charge a flat rate in a pc fix of 60$,how much money will they take and how much money i will be left?

is confusing...

thank you friends!

 

[callthatgirl]

From what I know, you put out a special for $60 and they get $30. After so many weeks, they pay you for each sold in a large payment.

 

[bosanci28]

From what I know, you put out a special for $60 and they get $30. After so many weeks, they pay you for each sold in a large payment.

so to get this right you saying that if i charge a rate of 60$ then they keep 30$?...

thank you,

 

[homebase]

My experience

so to get this right you saying that if i charge a rate of 60$ then they keep 30$?...

thank you,

I was approached by a couple of companies with a similar concept, but they were radio-based promotions. I pick a service, preferably worth $100 or so, they promote it on the radio station, then they sell the coupon for 50% off, and they KEEP all they money they sell the coupon for. But any add-on services or future business remain mine.

I figured it wouldn't work, but since there was no out-of-pocket and no long-term commitments there wasn't much to lose, so I did it.

I actually got one new customer, who said he heard about the offer and brought in his system asking for services that were completely unrelated to the services in the offer. He didn't actually buy the coupon from the radio station, either. He was still hoping we'd give him 50% off. (no, sorry...) But we did get one sale, and he did come back again later.

 

[bosanci28]

I was approached by a couple of companies with a similar concept, but they were radio-based promotions. I pick a service, preferably worth $100 or so, they promote it on the radio station, then they sell the coupon for 50% off, and they KEEP all they money they sell the coupon for. But any add-on services or future business remain mine.

I figured it wouldn't work, but since there was no out-of-pocket and no long-term commitments there wasn't much to lose, so I did it.

I actually got one new customer, who said he heard about the offer and brought in his system asking for services that were completely unrelated to the services in the offer. He didn't actually buy the coupon from the radio station, either. He was still hoping we'd give him 50% off. (no, sorry...) But we did get one sale, and he did come back again later.

I may have to try their services later,to give it a shut maybe will get more customers , right now is just to slow,but i know by investing little money can bring some profit back,
thanks,

 

[JAbbott]

Come to think of it I've never seen a company have Groupons available on two separate occasions. Maybe that speaks to the issue of customer retainment.