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Old 01-20-2011, 08:28 AM   #11 (permalink)
 
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Re: Does GROUPON or LIVING SOCIAL work or do you lose too much money?

The hope is to get in NEW customers that then become regular customers.
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Old 01-20-2011, 08:35 AM   #12 (permalink)
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Re: Does GROUPON or LIVING SOCIAL work or do you lose too much money?

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Originally Posted by vivid View Post
So you're discounting your services by 75%? Wow, not a good way to make money. You could probably profit more by discounting to your existing clientel.
I agree............ I think 50% is to much.
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Old 01-20-2011, 09:08 AM   #13 (permalink)
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Re: Does GROUPON or LIVING SOCIAL work or do you lose too much money?

the idea is not to make $$ on it, but you can if you do it right! It's to get NEW people in the doors. In the two that I have run, I have had only about 35-40 of my regular clients in the 785 that I have sold thus far.

I'll take 750 new clients that have never been here before. It's a marketing expense. This and online marketing is the only things I do these days.
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Old 01-20-2011, 09:24 AM   #14 (permalink)
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Re: Does GROUPON or LIVING SOCIAL work or do you lose too much money?

Sorry, But I've made money for 21 years with out giving the ship away.
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Old 01-20-2011, 09:35 AM   #15 (permalink)
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Re: Does GROUPON or LIVING SOCIAL work or do you lose too much money?

But when you factor a guaranteed return vs. a questionable return with traditional marketing and backing out the cost of doing the campaign: buying a huge list, design, print, post, radio etc... to reach HUNDREDS of thousands of people.

This is no upfront cost at all, you set the parameters. If it doesn't do well, you don't lose.

Different markets, dictate different things.

BTW, you can negotiate the rev share depending on performance.
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Old 01-27-2011, 08:09 PM   #16 (permalink)
 
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Re: Does GROUPON or LIVING SOCIAL work or do you lose too much money?

I did Groupon in Oct. the offer was a level 2 month unlimited or 3 spray tans (value $60) for $25. I sold 176 packages. Coupons expired 12/31. 134 were redeemed. I got paid $12.50 less a 1.65% credit card fee. The $2,163.70 was paid in three payments, 7 days, 30 days and 60 days later.
I haven't tracked each customer, but I know that many have continued to buy packages. I would only do it during a slow season so you're not selling packages at a discount when the beds are full during busy season.
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Old 03-03-2011, 09:45 PM   #17 (permalink)
 
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Re: Does GROUPON or LIVING SOCIAL work or do you lose too much money?

I highly recommend AGAINST using groupon. You'll get mostly non repeat, discount buyers. Instead, if you want to run a discount, run your own and have a way for people to sign up for it. That way you capture email addresses. That's where the real value of Groupon is.
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Old 04-18-2011, 04:22 PM   #18 (permalink)
 
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Re: Does GROUPON or LIVING SOCIAL work or do you lose too much money?

I agree with the salon marketer. they contacted me since I do a lot of sunless. I had the deal almost done. I was going to do bed sessions and then flip the customer into monthlies when they came in. Offering level 3 and level 5 beds. so the girl goes to write up the order and then emails me back stating that I have to offer sunless as well. when I asked her why this was her exact response "The rule was set into place because of all the health risjs that UV tanning can cause. Our subscriber base is very health conscious, so we needed to make sure that we offer something that wouldn't be harmful."
So when I wrote her back and explained to her the benefits of indoor tanning, she just responded that she was following company policy.

NOTE TO ALL PEOPLE DOING GROUPON -- THEY WON'T DO IT UNLESS YOU OFFER SUNLESS BECAUSE TANNING IS "HARMFUL"
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Old 04-18-2011, 05:47 PM   #19 (permalink)
 
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Re: Does GROUPON or LIVING SOCIAL work or do you lose too much money?

it has been that way for some time. From my understanding, it was more the amount of salons closing AND that salons only pull from 5miles, for UV decreasing their potential for profit.

I did it for my sunless salon and it did well...many repeat customers and my books have been filled. I am doing record breaking days. For me it worked out awesomly
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Old 04-19-2011, 12:51 AM   #20 (permalink)
 
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Re: Does GROUPON or LIVING SOCIAL work or do you lose too much money?

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it has been that way for some time. From my understanding, it was more the amount of salons closing AND that salons only pull from 5miles, for UV decreasing their potential for profit.

I did it for my sunless salon and it did well...many repeat customers and my books have been filled. I am doing record breaking days. For me it worked out awesomly
We do custom airbrush and it would actually cost me out of pocket to do that. Why do that when you can do facebook advertising, direct them to a landing page that asks them to like you on facebook and for their email to send them a coupon. When we have discounted more than 10 bucks off we get people who only want a deal for airbrush tanning. The girl flat out told me she wanted me to discount the airbrush down to 20 bucks. So they take 10 Bucks. My cost including extra staffing would be over that. Never mind we are the number one search for airbrush in our area online.
We did our own weekend promotions that gave us record breaking days and I spent under 500 bucks doing it. And guess what, my customers asked to hand out flyers for free in their businesses, to friends and family.
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