RSS
Twitter
Facebook
YouTubeAt What the Rock?!, we have been approached many times by Groupon. It never seemed like the ideal way for us to advertise. Why would I want to give away 75% in retail product value(25%,if not more, of which would go to an entity outside of Columbus)? The idea behind it does however strike my interest. Would anyone want to purchase a $20 coupon to WTR?! for only $10? My idea is to work it similar to Groupon, where we offer a limited number of coupons on our website to be used in-store only. The coupon would come with all the usual: expiration date, cannot be used with other offers, one per visit/household, etc. I was also thinking about donating 5% of the total amount purchased to a local charity. So besides the charitable contribution, all costs should be covered by doing this on our own. I just wanted to toss this idea out there to see if anyone would be interested in this or if anybody has any suggestions on how to make this work for us.
Columbus Underground Messageboard » General Columbus Discussion » Dining
Groupon, Living Social and other Deal of the Day Sites - News & Updates
[94 posts] [34 contributors]
Rate this topic:
-
Liner Notes
Short North
Login to Send PM
Posted 1 year ago # -
Walker
The KLD / Downtown
Login to Send PM
Daily-Deal Study: Good for Customers, Bad for Businesses:
http://blog.entrepreneur.com/2010/10/daily-deals-good-for-customers-bad-for-businesses.php
Posted 1 year ago # -
somertimeoh
Harrison West
Login to Send PM
Liner Notes wrote >>
At What the Rock?!, we have been approached many times by Groupon. It never seemed like the ideal way for us to advertise. Why would I want to give away 75% in retail product value(25%,if not more, of which would go to an entity outside of Columbus)? The idea behind it does however strike my interest. Would anyone want to purchase a $20 coupon to WTR?! for only $10? My idea is to work it similar to Groupon, where we offer a limited number of coupons on our website to be used in-store only. The coupon would come with all the usual: expiration date, cannot be used with other offers, one per visit/household, etc. I was also thinking about donating 5% of the total amount purchased to a local charity. So besides the charitable contribution, all costs should be covered by doing this on our own. I just wanted to toss this idea out there to see if anyone would be interested in this or if anybody has any suggestions on how to make this work for us.I'd buy one if the proceeds went to the CMC!
Posted 1 year ago # -
Liner Notes
Short North
Login to Send PM
Thanks @somertimeoh. CMC would definitely top our list for this deal.
Posted 1 year ago # -
SamuraiJack
Hilliard
Login to Send PM
Liner Notes wrote >>
At What the Rock?!, we have been approached many times by Groupon. It never seemed like the ideal way for us to advertise. Why would I want to give away 75% in retail product value(25%,if not more, of which would go to an entity outside of Columbus)? The idea behind it does however strike my interest. Would anyone want to purchase a $20 coupon to WTR?! for only $10? My idea is to work it similar to Groupon, where we offer a limited number of coupons on our website to be used in-store only. The coupon would come with all the usual: expiration date, cannot be used with other offers, one per visit/household, etc. I was also thinking about donating 5% of the total amount purchased to a local charity. So besides the charitable contribution, all costs should be covered by doing this on our own. I just wanted to toss this idea out there to see if anyone would be interested in this or if anybody has any suggestions on how to make this work for us.you should also look into Faveroo or Savvy.... I think they both donate to charity and I dont think Savvy keeps any of the money the way Groupon does..
Posted 1 year ago # -
JonMyers
HCMC ✈
Login to Send PM
It's a smart move by the Dispatch and I bet it will work really well for them. If I had to venture a guess, the typical Dispatch reader has never heard of Groupon and thus, I don't see much competition with the well funded startups out there.
Now - that landing page is ugly as shit and will be ineffective. There is no clear headline ("get the best deals" is not), no privacy policy listed, no clear call to action, there is nothing really compelling me to give up my email address, no examples, and that "how it works" lightbox drops below the fold and makes you scroll.
The stock graphic used for the logo for a company of this size is unacceptable and corny.
They'll no doubt get signups, but if they cleaned up that pigpen of a landing page they'd probably quadruple signups.
Posted 1 year ago # -
Walker
The KLD / Downtown
Login to Send PM
Doing the Math on a Groupon Deal
http://boss.blogs.nytimes.com/2010/11/23/doing-the-math-on-a-groupon-deal/
Posted 1 year ago # -
cc
Login to Send PM
Walker wrote >>
Doing the Math on a Groupon Deal
http://boss.blogs.nytimes.com/2010/11/23/doing-the-math-on-a-groupon-deal/I think this sums it up well. Groupon etc is advertising. They will probably not 'dry up' but become more 'accepted for/limited by' what they truly are.
Posted 1 year ago # -
JonMyers
HCMC ✈
Login to Send PM
Well, now it looks like all this discount crap really won't dry up anytime soon. There's a bit of insanity in this space right now.
Groupon competitor LivingSocial raises $400 million bucks.
Less than four months after landing a $175 million investment from the e-commerce giant Amazon, LivingSocial last week raised an additional $400 million from existing investors like Amazon and Lightspeed Venture Partners, and several new ones including T. Rowe Price and Institutional Venture Partners, according to two people close to the company who spoke on the condition of anonymity. The deal values LivingSocial at more than $3 billion.
Posted 1 year ago # -
ZHC
101 East Main Street, Downtown
Login to Send PM
JonMyers wrote >>
Well, now it looks like all this discount crap really won't dry up anytime soon. There's a bit of insanity in this space right now.FWIW this is a generational mega-trend imo, the names/gimmicks such as Groupon may change but the basic goal is the same. Discounting in various forms has been a huge trend in retail for a couple decades now and has ways to go probably before it reverts entirely.
Based on numbers I've seen on Millenials' shopping habits and the probable inevitable constricting access to credit as the economy slowly works off the excess, discounting is the new (well already old really) normal.
Frankly I'm a bit concerned the major banks may really start to limit debit card usage given the new fee rules, if that happens that could really change shopping/dining habits overnight.
But if it does, it does and we'll have to adjust accordingly.
Posted 1 year ago # -
Lakee911
Clintonville (South)
Login to Send PM
Who has that commercial that says something like, 'If you can offer 40% off one day of the year, then the rest of the time your prices are too high'? I tend to agree.
I love finding coupons and getting a deal, but at some places I'm really getting tired of it. I'm pretty sure that I get some of the best deals because I search high and low for coupons and discounts, stock up on good deals, etc., but I'd be willing to trade it all in if companies just lowered their prices accross the board.
For example, I tend to shop at Banana Republic because they have good quality clothes (shirts that come out of the dryer looking pressed, they fit me almost perfectly, and they have a decent selection) but man oh man, $79 for a shirt? That's nearly $85 after tax! I only buy them when they're on sale and/or I have a coupon and generally I'm getting them for at least 35% off if not up to 65% off. Sure, it's a good deal, but who wants to only be able to shop 6 days a year?
Posted 1 year ago # -
DavidF
Elysium Fields
Login to Send PM
My employer just sold our second round of Groupons. Over 1000 altogether. I would say it works for us for 2 important reasons.
1. We are a heavily word of mouth business where our customers tend to come to us every 8-10 years, so repeat business is less important to us than creating a positive image in the community as a whole.
2. My employer went into this viewing it similarly to a television advertising campaign. It is a marketing tool, one of many we use. It has stimulated some sales growth on its own, but it was never intended to drive in a ton of profitable sales. It's designed to create buzz and positive word of mouth. We went through training to emphasize Groupon customers were to be given VIP treatment even though we may be losing money on that particular sale.Ironically, one of our competitors is now running a similar offer and is having all sorts of pr issues with it. (different terms for Groupon customers, tons of restrictions, etc.) I believe that for them it may actually back fire and create an even more negative perception of their business.
I'll be following both of these pretty closely and see if there are any useful conclusions I could post here.
Posted 1 year ago # -
Liner Notes
Short North
Login to Send PM
-
Walker
The KLD / Downtown
Login to Send PM
Why the Numbers Are Stacked Against Daily Deal Sites
1 hour ago by Mikal E. BelicoveDespite all the hoopla surrounding the growing army of daily deal websites, researchers at Rice University's Jones Graduate School of Business say the business model is standing over the coffin holding the final nail, and looking for a hammer.
To sum up his exhaustive report, Dholakia says there isn't enough repeat business to make online daily coupon promotions sustainable in the long run. Among the "red flags" raised in the study is that nearly 80 percent of deal users (consumers) were first-time customers, and few of them (35.9 percent) spent beyond the deal value. Only 19.9 percent said they returned later for a full-price purchase. A surprising 21.7 percent said they never even redeemed the coupons they purchased.
READ MORE: http://www.entrepreneur.com/blog/219806
Posted 11 months ago # -
2thDoc
Downtown
Login to Send PM
Groupon actually just called. They are tweaking their program and have "Groupon Now"
Thanks for your time today!Groupon Now! works a bit different than what is typically known about Groupon.
Benefits Include:
• Self-service platform, which allows you to set and change the parameters for our audience
• Control when the offer is redeemable
- Example: Mondays between 1-4, Wednesdays between 6-9
• Limit the volume of customers
- Example: Valid for first 40 people, 2 open massage appointments
• Choose the product/service offered
- Example: Valid for manicure only, valid for lunch buffet only
• Groupon takes 25% of the RETAIL value, and you control your take and the discount to the customer.- Example: A $20 retail value deal nets Groupon $5 per voucher. You determine your take and percentage of the discount from the remaining $15
• Enables you to run offers on a consistent schedule or set them up at the last minute
• Turn it on and off whenever you want--It seems that Groupon is preparing itself (at least trying to) for this downturn by "enticing" Groupon businesses. I ran a Groupon in early March and I can say it was a mixed experience. A lot of people were just looking for the deal, which is to be expected, but several have returned. I will likely not use Groupon or the like again. Not saying it's bad, it's just not for me.
Posted 11 months ago # -
News
Columbus Underground
Login to Send PM
Is Groupon's Business Model Sustainable?
While Groupon’s model is simple, it isn’t sustainable, for two reasons. First, as has been the case with other web-based companies like Netflix and Open Table, Groupon is selling other companies’ products that have the upper hand in any deal negotiations. Second, they have plenty of competition from direct offerings from companies and from other web-based companies with a broad user base like Google, Amazon.com, and Yahoo, Expedi, Priceline.com and Travelzoo.
READ MORE: http://www.forbes.com/sites/panosmourdoukoutas/2011/10/22/is-groupons-business-model-sustainable/
Posted 7 months ago # -
myliftkk
Columbus, OH
Login to Send PM
So, anyone pick up an overpriced tech stock today?
http://www.huffingtonpost.com/2011/11/04/groupon-ipo-shares_n_1076147.html
My crystal ball tells me pretty soon you'll see Groupon's for 50% Groupon shares in your email inbox...
Posted 6 months ago #
You must log in to post.
Launched in August 2010, TheMetropreneur.com is a local online resource devoted to small business development and entrepreneurship. Its aim is to tell the stories of Central Ohio's business community, foster regional economic development and assist entrepreneurs with its resource-heavy focus.