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Starting a Groupon Deal

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

  1. TheBetterDoorhanger

    TheBetterDoorhanger Sponsor
    Posts: 526

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  2. New2TheGreenIndustry

    New2TheGreenIndustry LawnSite Senior Member
    from GA
    Posts: 860

    My feature runs tomorrow @ Groupon-Athens, GA...wish me luck!
  3. h2oskier

    h2oskier LawnSite Senior Member
    Posts: 601

    Hope it works out for ya. Be prepared for the ones looking to exchange for different services though.
  4. New2TheGreenIndustry

    New2TheGreenIndustry LawnSite Senior Member
    from GA
    Posts: 860

    So today went fairly well with 29 sold. I did not have as many calls as expected; just a few that wanted to ask if I would go out of the coverage area, and a couple that just wanted more info in general. I took h2oskier's advise and tried to make things as descriptive as possible. At first they had the mowing option listed as "professional lawn management". I had them say specifically mowing, edging, and blowing. The deal is good for an additional 24 hours, so I hope 10-20 more will sell. Overall, I think this will be a positive marketing strategy. I plan on leaving maintenance quotes for every job I complete. Regardless, my name reached thousands of people.
  5. h2oskier

    h2oskier LawnSite Senior Member
    Posts: 601

    Your going to notice the second day usually does better than the first, looks as if you did pretty well with 29. Keep us informed as how the total out come is. By the way you also be impressed with the ones who will tell their friends that they found a awesome deal on "groupon" and will then call you to see what kind of offer you will give them. GOOD LUCK to ya.
  6. Gilmore.Landscaping

    Gilmore.Landscaping LawnSite Senior Member
    from Ontario
    Posts: 645

    Had a buddy use groupon for selling design services or his design build company, they also do some maintenance. It worked pretty good for him since he is really only out his own labour costs for doing the drawings and what he got paid from groupon pays for his gas/time to go around and meaure up sites.

    The key is that you sell design services for $100, but then design $5000 in landscaping and you are easily making back your money.
  7. memphis.landscape

    memphis.landscape LawnSite Member
    Posts: 140

    A friend of mine did a groupon for lawn spraying. He lost a lot of money, while only retaining less than 5% of the properties. He said most of the people that bought the deal were in the lower income parts of town.
    Posted via Mobile Device
  8. J-Thomas

    J-Thomas LawnSite Member
    Posts: 22

    Be careful with social deal sites. 96% of customers will not spend a penny more than what the deal was and there is even a higher percentage of customers that do not return to the business. Meaning people will buy the groupon, you will provide the service and you won't hear back ever. So you made 50% of the groupon which was 50% of your price once. Great way to move product or get one time customers, but nothing past that.

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    Last edited: Oct 7, 2011
  9. J-Thomas

    J-Thomas LawnSite Member
    Posts: 22

    However, Groupon did announce last week that they will have a special program for returning customers.

    Here is the Tech Crunch article on return customers: goo.gl/RnLIX

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    Deal ends on 10/10/2011 at 5:30 PM EST. Next week's deal "High Lift Mulching Blades."

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  10. ptjackson

    ptjackson LawnSite Member
    Posts: 211

    Everyone on this thread has done a good job of outlining the issues. I think business need to think long and hard about doing a groupon to get new customers. Here are things you should think about

    1. Can you afford it? Groupon doesn't give you all the money as soon as they sell your deal. Can you cash flow your expenses until you get paid? Can you make any money when you have to give groupon 1/2 of sold coupon price, after giving a 50% discount? That means for a $100 service you would get $25- credit card fees.

    2. Can you keep up? What if 500 people bought your groupon? Do you have the staff to handle all that traffic? Remember most groupon buyers aren't long term customers, you aren't the exception.

    I can't tell you how many small business owner stories I've read about thest two issues. Just make sure you've thought thru them, I know there are many groupon success stories, if you offer one figure out how to become one.

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