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Should we do Groupon?

Khaos_Mage
Posts: 23,214
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1/20/2014 8:14:57 PM
Posted: 2 years ago
My wife owns a service based business and we have no money for advertising.
So, we looked at Groupon.

Now, Groupon is a major ripoff for business owners. Here's how it works.
We have to provide a deal that is at least 50% off.
Then, Groupon collects the money, and give us half. (that is 25% of the price of the service)
On top of that, we also have to pay the sales tax on said services, since dog grooming is a taxable service.

So, at the end of the day, a service that she would charge $44-48, we will be pulling in about $11.

My question to DDO is: is it worth it?
It will be if this turns into repeat business, but how many Grouponers care about service?
My work here is, finally, done.
YYW
Posts: 36,357
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1/20/2014 9:08:41 PM
Posted: 2 years ago
At 1/20/2014 8:14:57 PM, Khaos_Mage wrote:
My wife owns a service based business and we have no money for advertising.
So, we looked at Groupon.

Now, Groupon is a major ripoff for business owners. Here's how it works.
We have to provide a deal that is at least 50% off.
Then, Groupon collects the money, and give us half. (that is 25% of the price of the service)
On top of that, we also have to pay the sales tax on said services, since dog grooming is a taxable service.

So, at the end of the day, a service that she would charge $44-48, we will be pulling in about $11.

My question to DDO is: is it worth it?
It will be if this turns into repeat business, but how many Grouponers care about service?

If it brings in more customers than you would otherwise have, if in the time spent performing these services does not preoccupy her from full-paying clients, and if in performing those services does turn a profit which is worth taking -then yes. If even one of those are not the case, though, then no.
Tsar of DDO