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I just read this article about Groupon. It made me look at Groupon in a different way. Not saying it doesn't work, but this made me think.

What do you think ?

http://www.briancrouch.com/2011/01/a-groupon-tale/
I would have to agree with the writer. I liked the article so much I posted it on my Facebook page - thanks for sharing Smile

Guest

That is exactly why I haven't done Groupon, Wimgo, Livingsocial. People come for the deal and you never see them again. And you do all the work and they get half of your money.
This is off topic, but Idonls I love your pic!! So cute!

Guest

Thank You! That is my new kitty I got this year after having to put down my other cat I had that was 14 yrs old. Her name is Betsy. She is something!!
I'm sorry about your cat Sad I'm not looking forward to that day. I have a cat that's 9 years old and one that is 2. I love my babies!

Guest

It was very difficult to do. It was a tough decision but she had gotten to the point whee she couldn't even drink. I cried my eyes out and I missed her terribly. My cats are my kids and are special in that they aren't the typical stereotyped cats. Lots of personality and affectionate.

We just have to remember the great times we shared with them and know they had a great life with us as much as we loved them. Enjoy your babies!!
Loved reading that... thanks for sharing! Shared it on my facebook page also. Thanks again.
That is exactly the reason I haven't agreed to using Groupon in my salon. Too much money goes to them and for doing what?

Thanks for posting that Martine.
OT - Cheryl I had to put down my 18 year old fur baby 4 weeks ago today. That was one of the toughest days of my life. I am going to get another cat at some point, but just not ready for it yet. I know how you felt Sad They really do become a huge part of who we are, don't they. That is a great avatar pic!
They have been calling and emailing me for the past 2 weeks to run a deal. I just can't see myself working for pennies. The salon I rent my booth out of relies on these and the employees leave making nothing and it's sad. The salon owner keeps asking me to do one and I say no.

One girl did one about a month ago. She was a solo esthetician who ran a luxury manicure and pedicure with free polish, strawberries, and sparkling water. She sold almost 700 groupons. All she did was mani/pedis and eventually had to refund the money back to the buyers because she couldn't keep up with them or even have time for her regular clients.

Groupon and the rest of the "deal" sites are money hungry. I only seeing it work for restaraunts.
Martine you are so right. Stick to your guns.

These businesses have devalued the service industry to the point I fear many consumers will no longer be interested in buying something unless it is a deal. People only value what they pay for, so if they are constantly buying deals and moving from location to location in search of the next deal, they will not be loyal to anything other than price (as mentioned in the article). I have never bought into the 'getting paid to advertise' aspect of busnesses like Groupon. They can spin it any way they want to, but in the end it is a very costly form of advertising and your business may never recover from that discounted image.

Guest

scratchmyback :
> OT - Cheryl I had to put down my 18 year old fur baby 4 weeks ago today. That
> was one of the toughest days of my life. I am going to get another cat at
> some point, but just not ready for it yet. I know how you felt Sad They
> really do become a huge part of who we are, don't they. That is a great avatar
> pic!


Laura, I'm soooooo sorry to hear about your loss. 18 yrs?? That is a long life though. I waited some too. It is just like any other relationship, have to have time to heal. Thank you for the compliment! ((((((Laura))))))

I will tell you this though, after having a cat for so long, I fogot about the terrors of getting a kitten, man oh man!! But we made it through!! Now, I have to make it through her terrible two's, which is actually also her teen years........lol!!
Thanks Cheryl Smile
Since I have actually ran a Groupon, I surely can speak on the subject.
If one has clients, it would make no sense whatsoever to run such ads with Groupon/Living Social/etc. It also makes no sense to allow so many be sold that one cannot handle; caps can be put on the number sold.

As a new tech I would still be twiddling my thumbs in the salon and growing more desperate by the hour. I certainly could not have had the same response had I only placed an ad in the local paper or other printed materials.

What I have done before hand:
business cards - check
flyers - check
facebook - check
google places - check
any other free directories - check
in the salon day in/day out during hours stylists are there - check

What Groupon has done for me:
My name/biz name/address/website was in front of over 100K via email. Sure they may not have purchased but they saw it.
375 were sold at $25 a piece. That's only $12.50 to me, BUT, that at least covered my cost of product, supplies, rent, etc of a four month period that had I been twiddling the thumbs would have drained my own bank account.
And lastly, again being new in this industry it has allowed me to acclaimate my self into the salon, my environment, my techniques and timing and certainly meeting/greeting people.
I have several Groupon customers who have returned to me or have been kind enough to refer others to me. Isn't this the point of advertising?

I mean really all I hear here and elsewhere from many techs that are now more established tell us novices is: Practice, practice, practice and to allow time ' at least two years' to grow your nail business. So that's what I am doing. It is working for me at the moment; practicing and doing my time. Smile

So to sum it up, just like any thing, it doesnt work for everyone that's for certain. but I don't think it is as a bad as some of the negative press it is getting....

Oh and BTW...Groupon does do something too. They fully create the ads, they have collected or have available the 100K email addresses and after I have received ALL of my money, ANY refunds requested by customers comes out of Groupons portion-not mine. They EAT it!

Another example, by the by, a local dental office here runs one about every six months for the Zoom Teeth Whitening service. It runs for two days. Last I looked they had only sold 7 but, it is purely advertising in front of 100K. I was one of the seven.

sobeit

Anna Dea, thank you for sharing that. I like you can understand how it would help new businesses get their name out, and when there is NO business, then absolutely some money is better than none. I think anyone looking into a large deal like these offers that they look at the pros and cons for their own needs. Business is not, one size fits all. Big Grin
I had a good groupon expericance but you have to do it right.
I offered every person an upgrade, (french, shellac, parafin) 87% took atleast 1 upgrade.
Not one person has tipped under 10$ .
I sold a MAX of 250 (that was between 2 of us both renters)
I am not running any promotions or discounts for a year beacuase I told my regular clients about it and they were able to get on it.
27 clients have retured 8 or more times
1 clients has 28 Times Smile ! ( and she has turned out to be my best referal client)
So you see groupon has really helpped me build my books.
The regular groupon deals may be great for an independent nail tech. However, as an owner with nail tech commissions to have to pay out on top of overhead, product cost, etc. it could put me out of business in a matter of months. I can see how it would work fabulously for a business that has little to no product cost and that has a "group" setting for their services (such as a yoga studio or dance studio).

HOWEVER, groupon has started another program that works much better for businesses like mine. This program is Groupon NOW. I did sign up for it and so far the business that has come in from it has been direct callers who did not want the offer we had with groupon but DID book other services (more expensive services) with us. Groupon NOW offers the business owner much more control over the discounts they offer, the services they offer, how many to accept, ability to put it on pause/hold if the day turns out to be too busy, etc.
That's good to know Melodie! Thanks for posting that. As a salon owner, there was no way I could have afforded to do a Groupon deal as it was, but I will be looking into this. Thanks again!!
You're welcome.
I've talked to a few people in my area that HAVE run the regular groupon and they all have said that most of the ones that came in using the regular groupon have not returned. Being that I know these businesses and know they have high standards and excellent quality services and products, it is reasonable to assume that the reason the clients did not return is that they were just coupon shopping. I can't afford to only do coupon services.
As a newbie tech, I'm working for a place that's been running these types of Coupons on and off for a year. I had no idea until I walked in there and started to work. And let me tell you ladies, had I known, I wouldn't of worked there at all for that reason alone. Yes, some money is better than no money but my cut is incredibly low for the work I am doing. And I'm not seeing a lot of re-booking, none of the girls are. And believe me I stand on my work, my clients smile and fall asleep on me all the durned time, I give that good of an arm and leg massage and my tips are huge due to it. After these coupons expire, which is coming up in a month or two, I'm willing to bet I'll not get a lot of business. I feel it's hurting the place I'm working at because it makes it nothing more than a glorified chop shop, deal-hunters come to us; but they're all deal-hunters. Yes, something is better than nothing but I worry. I knew my 1st year would be rough, and I've mentally prepared for it, but ladies, please, I urge you...don't overly coupon; it just devalues the Business. Do it if you're just starting out or in a real slump, but non-stop like my place is doing, is bad all the way around. Techs don't stay there long, because we work so hard for pennies....pennies.
I'm glad I wrote what I wrote above..this is just a side-note BUT, I must happily say, I'm starting at a better Place this week that doesn't run exclusively on couponing. YAY!!
Congrats!!! Big Grin
Thank you. Yeah, reading that just about broke my heart and luckily I was able to snag another Offer that had been offered me previously. I just had to let go my pride and realise in this Industry, starting out, you're not gonna make a lot so might as well pick a place that sterilizes their tools, will train you, will mentor you, not throw you to the wolves and expect you to do stuff you don't like. I hate that I'm new...my "salon picker" is off still but I guess that's how you learn! <3