Starting a Groupon Deal

Discussion in 'Business Operations' started by ColePyck, Mar 1, 2011.

  1. ColePyck

    ColePyck LawnSite Member
    from Midwest
    Posts: 208

    Im seriously thinking about doing this as far as mulch delivery for the spring. Anyone else every thought of this and if so how did it work. I think it would be a great way to advertise and get some good leads. A normal delivery is between 45-50 If they get me say 50 customers and I can do the delivery for 25 I would be in fine shape on making a profit running mulch all day for a week or so. Thoughts, Ideas, Suggestions?
     
  2. sounds good to me.
     
  3. MowingMowingMowing

    MowingMowingMowing LawnSite Senior Member
    from Midwest
    Posts: 526

    Just to let you know, Groupon declines over 70% of the businesses that apply, you have to appeal to the ENTIRE AREA, which many businesses do not.

    Not sure if you already know this, but the way it works is as follows... Say the consumer buys $50 worth of services for $25, Groupon keeps between 50%-55% of the $25 and you get the rest...

    I've never seen lawn care on Groupon, it usually caters to restaurants and services with fixed expenses where an additional sale is "gravy".... Let us know how it works...
     
  4. lawn

    lawn LawnSite Senior Member
    Posts: 344

    so basicly you made aprox $12.50???? :hammerhead::hammerhead::cry:
    I saw one for a landscaper on angie's list.
     
  5. ColePyck

    ColePyck LawnSite Member
    from Midwest
    Posts: 208

    Damn I didn't know that. I knew they took a cut but not 50% jeeze!
    Posted via Mobile Device
     
  6. grass-scapes

    grass-scapes LawnSite Bronze Member
    Posts: 1,552

    There was a landscaper deal on Groupon here the other day. $50 bucks of landscaping for $25.

    They take just over 50% of your cut, so the landscaper did 50 bucks worth of work for around 11 bucks. It looks like when I looked at it he had sold about 30 deals. I have heard of small businesses going out of business because of groupon and the response they got.
     
  7. Gone Green

    Gone Green LawnSite Member
    Posts: 10

    Groupon supposedly drives a Ton of new business to advertisers....

    If you have a maintenance business.... (does it work equally as effectively with design/build service?)

    And enough business to cover the geographic area...

    It's an interesting idea. Timing it for the spring weather break when people get out of their cabins... may give you a serious boost in new clients.

    Serious question: What is the worst that can happen to you? (if you can't service the customers? can Groupon slap you on the wrist or just lose your brand quality to clients you would never have anyways?)
     
  8. Gone Green

    Gone Green LawnSite Member
    Posts: 10

    Groupon supposedly drives a Ton of new business to advertisers....

    If you have a maintenance business.... (does it work equally as effectively with design/build service?)

    And enough business to cover the geographic area...

    It's an interesting idea. Timing it for the spring weather break when people get out of their cabins... may give you a serious boost in new clients.

    Serious question: What is the worst that can happen to you? (if you can't service the customers? can Groupon slap you on the wrist or just lose your brand quality to clients you would never have anyways?)
     
  9. lawn

    lawn LawnSite Senior Member
    Posts: 344

    I am wondering why these companies did not make it? could you post the article please orprovide more detail info?

    Thx
     
  10. New2TheGreenIndustry

    New2TheGreenIndustry LawnSite Senior Member
    from GA
    Posts: 844

    I am currently in talks with Groupon and it looks like they want to feature me within the next few weeks. I will not be making money off the coupons sold, but I should be able to cover expense. I look at as a marketing expense. Thousands of subscribers will see my name even if they don't buy a coupon. Then out of the folks that do buy, I should expect about a 20% retention/call back rate.

    I was worried about selling too many coupons, so we have capped it at 150. Out of that 150 about 20% will redeem within the first month. 60% should trickle in within the next 6 months, and 15-20% never redeem the coupon all.

    As far as Groupon's cut, it is about 33% for the deals I have offered.

    I am pretty excited to get in on the deal and feel my application timing was perfect. They just came to my market so I was probably one of the first applicants. Plus with spring right around the corner, they want to have a landscape deal sooner than later.

    Pair this with my 5000 postcards going out this month, I hope to be a busy man...fingers crossed!
     

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