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Groupon?

Discussion in 'Business Fundamentals' started by robroquet, Dec 21, 2011.

  1. robroquet

    robroquet Junior Member
    Messages: 10

    What do you guys think of doing an ad on Groupon? Just pondering your thoughts and ideas.

    Rob:gunsfiring:
     
  2. Pristine PM ltd

    Pristine PM ltd PlowSite Veteran
    Messages: 3,794

    we did one called Homesav two years ago, not a bite. They make you discount yourself, which we sort of did, and we gave a service area, but it was a bit of a waste of time. I don't think snow is what these things are best for.
     
  3. robroquet

    robroquet Junior Member
    Messages: 10

    Yea, I was thinking more for the spring time. Four mowings up to 10k sq. ft for $100. Its a discount but could get you into potential clients for the spring time. For snow, I was going to discount it so that I would get $20/plow for a basic two car driveway up to 30 ft long.
     
  4. thelettuceman

    thelettuceman PlowSite.com Addict
    Messages: 1,216

    There are horror stories out there when the company making the offer gets too much business. Snow has to be removed in "real time". You cannot tell the coupon holder that you will get to it in two weeks.
    Now, if you had a restaurant and took reservations, you could book your work accordingly.
    Think carefully before you go the Groupon route.
     
  5. robroquet

    robroquet Junior Member
    Messages: 10

    This is true, but I believe that you can limit the amount of them sold. I will try it out and let all of you know how it worked.wesport
     
  6. thelettuceman

    thelettuceman PlowSite.com Addict
    Messages: 1,216

    Good Luck ... check the rules out b 4 u dive in.
     
  7. PEP Plowing

    PEP Plowing Junior Member
    Messages: 9

    Couple of things:
    1. LIVING SOCIAL has something called INSTANT. These are generally restaurant deals. In general I don't think people turn to L.S. or Groupon for snow removal. They usually wake up and go "OH S***", it snowed last night".
    2. When the above mentioned home owner needs plowing, now, they turn to the internet. And I have found the place they go is Craigs List.
    3. The above 2 scenarios are those in need of instant plowing. For those who plan ahead L.S. or Groupon may work. Maybe issue a discounted rate. Never hurts to explore.

    So, overall, I have built my customer list by: #1 Ad on Craigs. #2. Via referrals of those same customers. I started plowing 2 years ago, Philly area. That was the year we had 3 MAJOR events. I learned a lot and worked even more. Last year we had 7 solid events. By the end of last year I had 28 SOLID customers. All residential driveways. This year I am cutting some of the smaller out of way customers and hoping to replace them with higher revenue customers. Why waste time driving far away for $50 when I can stay local for $200. Also, when the BIG EVENTS happen I ALWAYS pick up a bunch of desperate home owners. The ones that usually shovel their own but for what ever reason can't do it this time. I don't rip them off, but I realize MOST if not ALL will NOT call you back or become regulars. So I save them for the end of the route, and rake in the cash.

    I can't wait for the snow to arrive. Because the Building business is non existent in the Philadelphia Suburbs!
     
  8. greg8872

    greg8872 Member
    Messages: 39

    While I normally don't "Cross post" across forums usually, another forum which I am on had a good thread on using Groupon. http://www.limousinesonline.com/showthread.php?13834-Groupon

    The difference for that group is that their service isn't something used as often (especially for those type of clients using Groupon).

    -Greg
     
  9. SullivanSeptic

    SullivanSeptic PlowSite Veteran
    Messages: 3,422

    I've seen two different companies in my area do groupons. They were for residential drives and had limits on size. They had the price supposedly discounted 67%. But their prices were just increased.
     
  10. phillie

    phillie Member
    from indy
    Messages: 97

    On my post cards I have a group-on but it's different than what you are looking for. I offer a percentage off when 3 or more neighbors call in and want services.
     
  11. PEP Plowing

    PEP Plowing Junior Member
    Messages: 9

    So after reading the above posts and connecting the dots to my building business marketing I arrived at a good COUPON for my customers:

    My real business is Residential Building. Generating leads and developing relationships are key to getting work. So this year I prepared a COUPON which I sent to all of my Plow Customers and will hand to all new Customers. The COUPON enables the customer to deduct the cost of the Plowing from any project over a $1000. My goal is to use the Plowing business to generate building business.
     
  12. Nearbywork

    Nearbywork Banned
    from Boston
    Messages: 25

    Groupon Model worked?

    We had thoughts about using a Groupon model to spark demand. The problem was, for services such as plowing it's super hard to handle the expected demand, which would be needed to arrive at a comfortable profit. The main reason is, unlike, say a restaurant, which can have its Groupon customers walk in and redeem their meal separately within a 6-month window, or longer, plow customers need the snow off their driveway at the same time. Most outfits who plow would find it really hard to fulfill that demand in the time needed to make customers happy.
     
  13. NickT

    NickT Senior Member
    Messages: 707

    Subscribed
     
  14. thelettuceman

    thelettuceman PlowSite.com Addict
    Messages: 1,216

    Post # 4 / 12/21/2011
     
  15. RefinedPS

    RefinedPS Senior Member
    Messages: 131

    In my experience Groupon isn't worth what you pay for! You have to cut your rates in half, and then they only pay you 50% of the gross revenue. So basically you are working for 25% of your retail rates. I don't know of a company that can operate on 25% of their revenue. :dizzy: My advice to all would be to do EDDM through the post office instead. Thumbs Up