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YouTubeApologies to the recent Groupon IPO folks. Today they had Rigsby's, right before Christmas I was able to get Spagio and Shoku. Multiple deals for awesome restaurants is my favorite way to use a deal. You could buy up to four for Rigsby's! I gave Spagio and Shoku as Christmas gifts. I think I may want to short Groupon.
Columbus Underground Messageboard » General Columbus Discussion
I like Google offers more than Living Social and Groupon
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Walker
The KLD / Downtown
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I see random deal of the day ads, usually when playing iPhone games, and one of them says "Psst... stop paying full price!"
I'm not sure which one that is, but screw em all. I WANT to pay full price when buying locally. New Years Resolution in 2012. No more insane coupons. ;)
Posted 4 months ago # -
derm
Grandview
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But what if Rigsby's wanted you to come to dinner at their place and volunteered to take twenty bucks off your dinner, still giving you the fine fare you are accustomed to. Voluntarily. Twenty bucks in your pocket to take to a local Gallery Hop place to spend. Wanted you to do this. Used one of the largest internet media companies on the planet to try as hard as they could to get you to keep that extra twenty bucks in your wallet, to spend however you wish, take to a food truck the next day and spend twenty bucks. Would that be a bad thing? If Kent Rigsby actually wanted you to do that?
Posted 4 months ago # -
DavidF
Elysium Fields
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Are you kidding? Walker is taking a principled stand! Buying those amazing deals would be just as bad as, I don't know, organizing a meet up of people from a popular website and letting them run food and drink specials. And we know how bad that is for local businesses.
Full cost or nothing!
(oh, and happy hours screw local businesses too, that's why Walker always insists on paying full price)
Posted 4 months ago # -
Walker
The KLD / Downtown
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DavidF said:
Are you kidding? Walker is taking a principled stand! Buying those amazing deals would be just as bad as, I don't know, organizing a meet up of people from a popular website and letting them run food and drink specials. And we know how bad that is for local businesses.Full cost or nothing!
(oh, and happy hours screw local businesses too, that's why Walker always insists on paying full price)
Oh no! Ya got me! :P
I guess what I meant by "full price" is that 100% of my dollars are completely going to the small business, and not 25% with the groupon model (50% off, 25% to groupon, 25% to business). Regardless of any type of in-house promotions, restaurants are still getting 100% of their sales.
When we host happy hour events, more often than not, restaurants are utilizing existing happy hour specials, so attendees usually aren't getting a deeper discount than normal, aside from the extended timeline of the promotion (most places don't always run happy hour til 9pm, but we usually ask them to for a special event). Furthermore, we don't make any money from drink or food sales at these events. 100% of the sales go to the businesses.
Anyway, if you see that as being a "bad" thing, or "as bad as" giving half of your cash to the middleman coupon corporation in the process, then I guess you don't have to attend them. :P But I would miss hanging out with you guys regardless. ;)
Posted 4 months ago # -
DavidF
Elysium Fields
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Walker said:
Oh no! Ya got me! :PI guess what I meant by "full price" is that 100% of my dollars are completely going to the small business, and not 25% with the groupon model (50% off, 25% to groupon, 25% to business). Regardless of any type of in-house promotions, restaurants are still getting 100% of their sales.
When we host happy hour events, more often than not, restaurants are utilizing existing happy hour specials, so attendees usually aren't getting a deeper discount than normal, aside from the extended timeline of the promotion (most places don't always run happy hour til 9pm, but we usually ask them to for a special event). Furthermore, we don't make any money from drink or food sales at these events. 100% of the sales go to the businesses.
Anyway, if you see that as being a "bad" thing, or "as bad as" giving half of your cash to the middleman coupon corporation in the process, then I guess you don't have to attend them. :P But I would miss hanging out with you guys regardless. ;)
Ouch! Way to turn that back on me.
My real point is that promotion, no matter what form it takes, costs the business. The worst thing you can do as a business is sink money into marketing only to see no return. (as to whether these things give a positive return or not is another thread).
Posted 4 months ago # -
Walker
The KLD / Downtown
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Sure, marketing costs money, and I agree, that's a whole other topic for another thread.
I'm just wondering how much value is still left in the over-saturated "deal of the day" market. I'm personally tired of that model as a customer. It's not going to keep me away from other types of marketing, promotions or trying other things, but if I'm the type of person who is mindful of spending money specifically with local businesses, then it doesn't make sense to buy anything from any "deal of the day" vendors.
Posted 4 months ago # -
Walker
The KLD / Downtown
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derm said:
But what if Rigsby's wanted you to come to dinner at their place and volunteered to take twenty bucks off your dinner, still giving you the fine fare you are accustomed to. Voluntarily. Twenty bucks in your pocket to take to a local Gallery Hop place to spend. Wanted you to do this. Used one of the largest internet media companies on the planet to try as hard as they could to get you to keep that extra twenty bucks in your wallet, to spend however you wish, take to a food truck the next day and spend twenty bucks. Would that be a bad thing? If Kent Rigsby actually wanted you to do that?Hands down, the biggest appeal of the "deal of the day" (DooD) model to a business is to get new customers through the distribution channels of the DooD provider. Groupon has a big list (email, social media, etc), and I imagine Google does too.
That being said, I'm already familiar with Rigsby's and have dined there multiple times. Kent would not benefit from me as a customer buying his deal to save money. He would benefit from me returning to his restaurant as a normal couponless customer (whether that's full price or happy hour or whatever).
With any new platform in the market, you're bound to see some businesses either testing it out, or wanting to get in front of that audience at least once. As time wears on, the deals from places like Rigsby's, Spagio and Shoku will dry up. Most restaurants can't afford to give away sales for 25 cents on the dollar in the long term.
I can't help but wonder if Google Offers will in a year be offering the same types of accupuncture, "PrinterPix" and laundrymat deals that Groupon is offering today. Living social is offering online language courses and something called a "DNA self-discovery kit" (sounds dirty) today.
Almost as great as the junk snail mail flyers I get delivered into my physical mail box. :P
Posted 4 months ago # -
DavidF
Elysium Fields
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Walker said:
Sure, marketing costs money, and I agree, that's a whole other topic for another thread.I'm just wondering how much value is still left in the over-saturated "deal of the day" market. I'm personally tired of that model as a customer. It's not going to keep me away from other types of marketing, promotions or trying other things, but if I'm the type of person who is mindful of spending money specifically with local businesses, then it doesn't make sense to buy anything from any "deal of the day" vendors.
Sure, but you're exactly the type of customer the business doesn't want buying these offers. The gamble is that these will bring in new customers.
Posted 4 months ago # -
Silver Bezel
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Walker said:
Oh no! Ya got me! :PI guess what I meant by "full price" is that 100% of my dollars are completely going to the small business, and not 25% with the groupon model (50% off, 25% to groupon, 25% to business). Regardless of any type of in-house promotions, restaurants are still getting 100% of their sales.
When we host happy hour events, more often than not, restaurants are utilizing existing happy hour specials, so attendees usually aren't getting a deeper discount than normal, aside from the extended timeline of the promotion (most places don't always run happy hour til 9pm, but we usually ask them to for a special event). Furthermore, we don't make any money from drink or food sales at these events. 100% of the sales go to the businesses.
Anyway, if you see that as being a "bad" thing, or "as bad as" giving half of your cash to the middleman coupon corporation in the process, then I guess you don't have to attend them. :P But I would miss hanging out with you guys regardless. ;)
If you buy a deal on Faveroo then I believe all of the money goes to local businesses since Faveroo is owned locally.
Posted 4 months ago # -
HogRoaster
Grandview
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Are you sure that's how it works: 50% off / 25% to Groupon / 25% to the Merchant? I'm not saying you're wrong, but the way I understood it was that Groupon simply collects the money up front, holds onto it for several months until the Groupon is used, then finally pays out the amount -- per individual Groupon -- as it it used. There might be another 30-day delay, too. If your Groupon expires, they keep the money. Basically, they make their money by holding onto the consumer's money until they're ready to go use it, not buy going 50/50 with the merchant. Or did I hear this wrong? Of course, there are credit card fees and probably some other fees that the small businesses would pay anyway, but not 50%. Also, SOME of these deals aren't that good...it's kind of like getting a "$90 sweater" from Kohls at 50% off....you're getting a $45 sweater that nobody in their right mind would spend $90 for normally....so that first 50% really isn't getting missed.
Posted 4 months ago # -
Walker
The KLD / Downtown
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HogRoaster said:
Are you sure that's how it works: 50% off / 25% to Groupon / 25% to the Merchant?I believe the deals have grown more customizable at this point, but Groupon pioneered the 50/25/25 model where a $100 gift card to a restaurant sells to the customer for 50% off ($50) with the restaurant pocketing $25 of each one sold, and Groupon pocketing the other $25 of each one sold.
So essentially, the restaurant is selling a $100 gift card for $25.
Posted 4 months ago # -
leftovers
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I found that Faveroo has got me to try several local places that I would not have tried but now go to regularly. I would never have gone to the Movie Tavern had they not run a promotion and it is now our favorite movie place. Right now I am contemplating a 50% off food coupon they have at Loose Goose Tavern. Ir is not in my stompin grounds, but it might give me that extra push to leave my comfort zone.
I figure that these places are going to spend advertising dollars somehow. That money (which averages into every dollar spent there) would probably be going to some form of print, web, radio, or tv advertising anyway - it is just more transparent. I am blitzed by hundreds of ad banners a day. If it comes instead as a discount to me I am not going to complain. I see this as more about advertising money. i think it is up to the individual businesses to determine if it will work for them. At this late date in the game I am sure they are aware of the pros and cons.
Posted 4 months ago # -
Kardashalistic
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Walker said:
Hands down, the biggest appeal of the "deal of the day" (DooD) model to a business is to get new customers through the distribution channels of the DooD provider. Groupon has a big list (email, social media, etc), and I imagine Google does too.That being said, I'm already familiar with Rigsby's and have dined there multiple times. Kent would not benefit from me as a customer buying his deal to save money. He would benefit from me returning to his restaurant as a normal couponless customer (whether that's full price or happy hour or whatever).
It depends on what you mean by "multiple". Rigsby's has been open for a long time. So having gone there 3-4 times wouldn't exactly make you a regular. You are just a customer. Groupon also pitches to a business that their site is intended to draw in people who haven't been to a particular business in some time, and to give them another try.
Posted 4 months ago # -
cbus11
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It seems a question of how a business spends its advertising dollars. I am not as mostivated as some people by these discount deals, but know several people who see it as excuses to try new places.
I have bought some Dine Originals and Faveroos in the past. Personally, I feel a litte cheap when I pull out the coupons.
Posted 4 months ago # -
Walker
The KLD / Downtown
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cbus11 said:
I have bought some Dine Originals and Faveroos in the past. Personally, I feel a litte cheap when I pull out the coupons.Just a point of clarification... Dine Originals is a local membership-driven nonprofit. The gift cards that are sold are what makes up the membership dues rather than a cash-based dues system. Not quite the same thing as a for-profit Deal of the Day company.
Posted 4 months ago # -
derm
Grandview
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They had Basi too.
I sort of see your point. In the case of Rigsby's and Basi, I dont go very often, so this drives me to those places. In the case of Shoku and Spagio, I go often. They compete with Z Cucina, Trattoria Roma, 3rd and Hollywood, Figlio, AAB, Vino Vino and the others on the Grandview strip near my home where most of my dining is. This gives them a competitive advantage in a most competitive few block area. Now when we go out, those two are first choices. The coupon paid to put them in front. They also limit what you can buy with the coupons as well as when you can attend to drive you towards what they want to sell and when. I knew that before I bought them. They dont sell out every seat every night so this will increase their bottom line, even if percentage wise it may be less than others tables. Not different to me if you go and are not a drinker so dont order cocktails and have a lower bill without that higher marked up item. Or you are not a big eater and split a plate, or are vegetarian and so get the veggie platter or a salad main course instead of the prime rib. Do you voluntarily go to a restaurant and order the most expensive, most highly marked up dish for each person when you go out to eat? A soda instead of water? Skip the appetizer or dessert? If you do not you are keeping money in your pocket and not the restaurants. My wife and I at Rigsbys would get a bottle of wine and thus may generate a larger profit from the meal than someone buying only food and not drinks. The wait staff will be tipped from the full amount by me so a local employee gets paid. And while I like the owners of the restaurants well enough, I like my wife and kids more so keeping the money in my wallet as opposed to voluntarily paying more has not a qualm in my mind.
Posted 4 months ago #
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