Groupon?

[harmony]

Deleted.

[julia]

I just read this the other day:
http://blog.moneysavingexpert.com/2011/07/26/bought-a-spa-day-from-groupon-or-others-did-you-get-it/

Hope that helps.

[shadowmoss]

I did a sea kayaking adventure up in the San Juans just before I moved away from WA. I'm glad I did as I realized all that I could have been doing if I had just looked around more. The Groupon deal got me off my tush and up there for the weekend. I'm glad I had the deal, as it was well worth what I paid, but not (IMHO) worth the full price. On the deal it said that Saturdays in August were not included and only 1 Groupon per outing, so I waited until the first Saturday in Setember, called ahead and reserved. No special treatment in a bad way or anything. I left the States right after that, so I didn't take advantage of any mroe offers.

[Float On]

On the other side. I've had artist and gallery owner friends who have offered a Groupon coupon and found that it didn't really add additional income or new customers. They found that the people that bought the coupons were already customers and spent the minimum of what the coupon offered, oh and most of them waited until the very end of the coupon deal to use it. By the time Groupon got their % they felt they'd broke even or even lost a little.

I haven't purchased any but look at what is offered in my town on a regular basis. In a larger town tot he North of me a store offered a groupon, lots of people purchased it, then the store closed up over night. People are still in a fight trying to get their money back.

[reader99]

I've used it and it was great. The downside risk is buying something - all you have to do is click - and then not getting around to using it in real life. I'm very careful to consider whether the offer is just an exciting idea, or something I will genuinely do.

[Perplexa]

From a buyer's perspective: I've never used Groupon, but my understanding is that there's nothing fishy about it (no hidden costs or anything), however, when I've looked on the website, I've found that most of what's offered is not stuff I'd need or would go out of my way to have without the coupon. A $50 facial at 50% off is still $25 more than I'd spend on a facial if I didn't have a coupon.

From a seller's perspective: I heard an interesting story about this on NPR, and like Float On's friend, most small businesses (Groupon's target) have not found that a Groupon deal brought them new reliable customers and all lost money on the groupon deal itself (with the hope of bringing in new clientele).

From Groupon's perspective: The same story pointed out that Groupon may not be a sustainable business model. Most small businesses can't afford to offer Groupon deals over and over, and that means that Groupon has to keep finding new customers (the businesses). That can only go on for so long, especially if word gets around that offering a Groupon deal won't necessarily benefit your business in the end.

[treehugger]

From a seller's perspective: I heard an interesting story about this on NPR, and like Float On's friend, most small businesses (Groupon's target) have not found that a Groupon deal brought them new reliable customers and all lost money on the groupon deal itself (with the hope of bringing in new clientele).

I've never used them (I don't have room in my budget for things that Groupon offers coupons for, discounted or not), but I have been hearing stories from business owners lately (IRL, and on egullet.org) that it just doesn't work out in the biz owners' best interest. Groupon makes their percentage up front (without spending any money other than advertising) and then the biz owner reliably loses money when the Groupon is redeemed. So yeah, Groupon is probably not getting much repeat business from the business owner side.

Kara

[Bastelmutti]

I have bought a variety of Groupons and been satisfied with them - restaurant, hotel, kayaking class, online photobook. I accidentally let one lapse, which is unfortunate, but it was only one. The stories about the merchants seem right to me. I buy from businesses I know I will frequent anyway, or do one-offs, like the hotel getaway and kayaking class.

[AustinKat]

My husband and I have bought Groupons for a few restaurants that we otherwise wouldn't have been able to afford, and also one for an art-supply store. Definitely keep an eye on the expiration date--we tried to make a restaurant reservation on the day its Groupon expired, and were told there was nothing available because everyone else was using their Groupons. :|(

There's an interesting profile (http://www.vanityfair.com/business/features/2011/08/groupon-201108) of Groupon's founder in the current Vanity Fair.

[jennipurrr]

I've had mostly good luck with Groupon. I've used them on several restaurants and used one on a massage a couple weeks ago. I get a massage a couple times a year and I really liked this person. She was new in town, which is why she did the Groupon, so I will probably return at full price. I did get a Groupon from a house cleaning service that did NOT work out. I tried for months to reschedule and eventually had to ask for my money back from Groupon.

[creaker]

Most of the complaints I've heard are from the business side - it doesn't lead to the repeat business they are hoping for. Especially in this economy.

[herisf]

I've used Groupon before, but I am careful to buy only those for companies I already use or am willing to try. I did snag a deal for half off a whale watching tour in my home town, and will be going next weekend to a museum a couple hours away. If you're careful, it can be a great deal to get you out and about locally.

[razz]

For those who are Canadian, the equivalent apparently is 'stealthedeal.com". I looked at it since it has been advertised in our local paper - fullpage ad every day for the past few weeks. You have to sign first to get any info. I have no desire to have one more email coming into my mailbox

[frugal-one]

I recently signed up for Groupon and they just sent an email with code for $10 off first time use. I have a few weeks to take advantage of the deal.

[pony mom]

The owner of the salon/spa where I work was all gung-ho about jumping aboard Groupon when she first heard about it. After reading up on it, I convinced her it wouldn't be a good idea. Their fee is 50% (which was difficult to find out on their website). If we offered, say, an $80 massage, we'd only make $40. At that price, I the MT would make $18, the owner $22 (I get 45% commission). The client would most likely tip the minimum 15% (or $6, though I've recently had a 1/2% tip on a very expensive service). A lot of Groupon users just go looking for one-shot deals and wouldn't come back. We have specials two days a week that seem to be working at attracting and keeping new clients.

It's a good deal for the person using Groupon if it really is a better deal, but not so good for the business offering it.

[Zoebird]

as a business, we have used it to promote our offerings; and, we have also purchased from groupon (and similar sites).

Restaurants, bowling, plays, get-aways, our dental appointments (that was a GREAT deal and we got an AWESOME dentist), and several others.

seriously, i like it.

[Zoebird]

our business was able to get a good price on the whole thing.

our commission was 20% (that's what the company took from us), but we had to offer a deal at 50%. but, since people pay us rent, we didn't loose anything on the deal. Also, most of our people were new to the business, so this was a way to introduce themselves to the community.

For us, the point was to begin to get brand awareness -- which worked out well. So, in our case, no one *lost* money because it was the difference between paying rent and no customers vs paying rent and low-paying customers whom you could "flip" into returning clients.

and, some have. i would say that most of our people averaged a 10-15% turn over of one-offs to returning clients. The yoga program did the best -- we managed to turn over about 40% into regular clients. This also started our "word-of-mouth" process -- which is a BIG deal here. Many of our practitioners opted to do "bring a friend" deals as well -- both get two appointments at 20% off. This is a higher rate than the groupy deal, but it turned out to be not much higher for the client (usually a $10-15 difference), and most were happy to use it and happy to give one away to a friend, and that's how we really hooked a number of people into regulars.

we also adjusted a pricing scheme. Instead of it being "sign up for five, get the sixth one half-price" as is common, we actually set it up based on how often a person wanted to come. Drop in: $85 (massage, etc); once a month: $80; biweekly: $75; weekly: $70. Most people will sign up for biweekly or weekly, and we did it "friends and family" deal which means that you can "give up" any appointment to a friend/family member, and you pay the same rate. So, we have several ladies who come biweekly, but pay the weekly rate, because they are using a "friends and family" deal.

This has really hooked a lot of people into regular clients going to multiple practices. Our pricing is fair (slightly above-market), and really feels like "the best deal in town" form the feedback we are getting from repeat clients.

You really have to understand -- as a business owner - how to make it work *for* you.

We are currently not offering any deals -- other than our normal pricing -- and looking at using the sites sparingly (no more than 3 campaigns per year), and each campaign being carefully planned and organized. So, yeah, it doesn't work as easily as some business owners want, but you really have to understand how to work it. And it took us two campaigns to figure it out (we've done 5 thus far).

[Nella]

I purchased a $50 value Groupon coupon for $25 of goods at The Body Shop. It's a place I already shop, so I knew the products they offer. (So, as mentioned in a couple posting above, I wouldn't be a "new" customer.) I do think I got a good deal, and I didn't buy over and above what the coupon was worth. (No impulse purchases when I went to the store.) You do need to be careful of the expiration date of some Groupon coupons. Coupons can often be valid a surprisingly short period of time, e.g. 30-60 days, not 6 months or a year as one might assume.

[Mighty Frugal]

They have Groupon in Canada-I get them.

I have a suggestion for businesses who toy with joining Groupon. I always buy as a 'new' client and would definitely be a repeat if I enjoyed it. For instance, I bought one for a cut and colour at a hip salon downtown. I'm in the market for a new salon so was happy to buy a cut/colour at such a discounted price. If the salon had any business savvy they would have given the Groupon clients a top (or mid range) stylist NOT a low end stylist. She ruined my hair and I will never go back-coupon or not. I NEVER use low end stylists because they do not have enough experience to cut/colour hair.

Had I had a top or mid stylist and been given a good quality haircut/colour they would have a new client AND I have a very big mouth and would have spread the word to all my friends.

I love these discount coupons. It gives me a chance to try new products/services at a reduced price. If I like it, I will become a repeat customer