I had some salesman call me up to market groupon. When he learned that a framing job can be more than the "retail" coupon value, he never got back to me. He said they dont want customers upsold on the coupon. Like they have to pay more than the coupon states?!?!?!Well I'm about done with groupon and have yet to do anything with them. I worked out the "deal" nearly 2 months ago. Have not heard anything from them - info for ad copy, schedule when it will run, etc. Repeated emails get no answer. Truly ready to give it up. Of course, this means that it will run tomorrow with no notice.....
He may have been from a Groupon-like company. There are imposters out there who do not properly identify themselves. It just doesn't make sense that Groupon would call you then turn you down because of a basic fact about our business type. They know framing very well. We ARE their frame package special. When they have a restaurant they can plan on selling about 400 certificates. A hair salon is likewise hundreds. A waterpark or such is over 1000. A frame shop is about 80. They know that framing does not have as wide an appeal as other business types. They are ok with that because they try to get a mix of businesses. But they hardly need to go calling on frame shops when we provide the low end of their revenue. I can tell you, once you go on ad salesmen come out of the woodwork. Groupon has no problem with upselling, but they do want a customer to be able to redeem their certificate for something of value without spending more. We made our Groupon for the highest price level of our package frame special. We have upsold nearly every one redeemed so far and have had very happy customers. On the flip side, we have also let ourselves be taken advantage of a few times.I had some salesman call me up to market groupon. When he learned that a framing job can be more than the "retail" coupon value, he never got back to me. He said they dont want customers upsold on the coupon. Like they have to pay more than the coupon states?!?!?!
Here's how it breaks down:I guess the reason I am asking is because, if I understand correctly, the customer buys the certificate on line... what happens to the funds from the unredeemed certificates?
So you also get half the funds of the purchased but unredeemed certificates?
There could be a fair amount of revenue there too.
There's at least one chain of framing stores in my area that advertises "We honor all competitor's coupons", and this is the concept I think would apply here. I don't do any such thing. If someone were to wander into my shop by mistake and present a competitor's coupon or voucher, I would instead offer to quote my everyday reasonable price for the job... "You might be pleasantly surprised"Just have a question.
Can any competitor take your Groupon certificate as their own?
The only issue with that is when they first come to town their database isn't that large and you don't get as much of a response.I would suggest that if Groupon comes to your town that you get in when it is new. Waiting period is not so long.
Just make sure she prices her offering appropriately. I've talked with a few restaurant owners here in town who are some of the "horror" type stories you hear about Gpon and what we discussed was that most people who do the offer at more than or at their Avg ticket get pummeled. One's restaurant has an average ticket of $22 per diner for their meals (they didn't include Alcohol in theirs) and they did a $30 for $15 Gpon. That netted them a little less than $7.50 per $30 redeemed. That didn't hardly cover costs. When we worked the number he saw that he would have been better off at $15 for $7.50. He would have gotten around $3.25 for it and would have collected about $7 additional if someone spent the $22 average (diff between Gpon @ $15 and the $22 avg ticket). That would have given him $10.25 for a $22 average and he would have actually made money on it. If it turned out they spent the $30 that he hopes to raise his ticket to then he would have collected an additional $15 on top of what Gpon paid him and he would have netted $18.25 per $30 which would have made him money.I understand where you are coming from Paul. But I figured I wanted to get in on the ground floor before the other framers in town heard about it. (They're not well informed like me, because they don't participate here on the G )
My wife has a www.CleaningBs.com company and another Maid service just ran an offer here in town and they had a tip point of 10 and sold 37. She would be happy with that, actually a little overwhelmed perhaps (although she does have help lined up)
Some can't wait to bring out the Groupon certificate.... "I brought in a Groupon!"We had a little something take place this afternoon, and I was debating whether or not to mention it on the Groupon discussion boards.
A customer came in... we always ask fairly early on in the first meeting how they found us. This is mainly so we have an idea as to what is bringing in the customers, but also so we know in advance if they have a Groupon or other voucher. While we don't treat Groupon customers any differently, knowing that they have the voucher gives us a little something to use when it comes to closing ("That comes to $275, but it's only $150 after we apply the Groupon").
So she tells us she was "just in the neighborhood and checking us out". Only AFTER the design is done and rung up and it's time to take a deposit does she whip out the Groupons. Clearly Groupon was the way she found out about us, but she hid that from us until the very end.
This is the second time this has happened to us...
I find this a little annoying... do customers actively conceal the fact that they have Groupons because they fear they'll get treated differently?
Ah, okay. Until now I've redeemed very few coupons of any other kind (as in, very little response to coupon offers) so I don't have a baseline to go on.Jim, it isn't just groupons, it's any kind of coupon. The customer wants to keep their coupon a secret so that you won't try to upsell them or pad the price with "labor" charges.
Actually, I notice that the tip points seem to be roughly 10% of the final number sold. I think Groupon has enough experience to figure out the approximate response rate and set the tip point accordingly. For me, the tip point was 20 Groupons, and I went on to sell 345... that's in the ballpark.For me the groupon guy recommended it hella low and I just said ok.
If you look most of the tip points are very low.
Was that "The Great Frame Up"? They sold 30.345 is nice.
There was a franchise frame shop near here that only sold around 40 when they did theirs.