[Warren Aldridge]

And why should they have our industries interests to heart? Groupon is its own business. A marketing machine that prides itself on get "IT'S" clients the best deal around.

Besides putting your name down and working like a mug your carpet cleaning business has done NOTHING to get the clients. Groupon has and those clients will remain Groupons, and like Simon says, next year when they want it done again they'll wait for another deal from Groupon, especially since they've had such a good job last time "they did Groupon"

Who are carpet cleaners to dictate that they want above the odds, thats not what its about, its about their commitment to get the best possible deal for their customer base.

Today its a carpet cleaner, tomorrow its a hair dresser and on it goes, The only winners are Groupon and their customers. Not us, and maybe that will be found out next year when you try market this database.

Number 1 rule, don't build your foundations on soft sand

[Steve. Taylor]

After reading all the posts i went for it see link looking forward to it

http://www.groupon.co.uk/deals/southampton/poppadom-express-plus/1041074?nlp=&CID=UK_CRM_1_0_0_277&a=65

[Andrew Briscoe]

After reading all the posts i went for it see link looking forward to it

http://www.groupon.co.uk/deals/southampton/poppadom-express-plus/1041074?nlp=&CID=UK_CRM_1_0_0_277&a=65

This type of offer is where groupon works, there is 75% profit in this type of food, there are supplements to pay for certain foods, also you will probably buy a drink or too at inflated prices, they are putting bums on seats during quiet times when they still have staff and heating and lighting and rates etc still to pay. they will probably reduce portion sizes by atleast 10 % too.

Not a lover of groupon personally for our industry, i think it is taking 100's of thousands of pounds out of our industry, which isnt good, i think it degrades us.
Thankfully they do not operate in my county and hopefully never.

Andrew

[Buckland]

The reason there is so much debate about this is because doh! it is big news. And IMHO it is bound to do some damage to our industry -  Groupon has been mega in the US and its going that way over here - the difference is the US domestic market is five times bigger than ours here so can soak up different pricing regimes - I imagine there will be a reaction here at some stage so stay tuned for a 'Groupon is not as good as it seems' feature on a BBC Watchdog programme near you soon!

No the real reason why it alarms a lot of sensible people is that IT CHEAPENS THE VALUE OF THE CARPET CLEANING PROPOSITION - it leads joe pubs to believe that it is a useful, quick, cheap and ultimately disposable service that can be obtained at a discount very easily - it is cheap therefore it is worth very little...

I can see it was inevitable that our business would be affected by Groupon (because we have a vast ocean of grubby careptes out there and I see why some people would do it and good luck to em' (actually not, I hope their little legs get worn down) and it has to be admitted as a business idea it is brilliant - the time imperative is a clever trick as no-one wants to miss a bargain - and it relies on current trading conditions which encourage people to think laterally - there is no outlay in terms of direct advertising cost but the cost is wrapped up for the operator in the performance of a contract which they have to fulfill. It also relies on several suckers being born every day... one is a client the other is an operator

Groupon is the only winner in all this ultimately - most people will only remember Groupon not the cc - and if you dont match the price next time around they can just go back to Groupon ...

[cannon]

Ive went for it as well

http://www.groupon.co.uk/deals/newcastle/backwaters-restaurant/1042004?nlp=&CID=UK_CRM_1_0_0_277&a=61

£10 meal for 2 with 2 beers, Its a great way for us single lads to treat the ladies. Not so good for our business though.

[Steve. Taylor]

Karl that's a better deal than mine you get a beer as well

[The Great One]

After reading all the posts i went for it see link looking forward to it

http://www.groupon.co.uk/deals/southampton/poppadom-express-plus/1041074?nlp=&CID=UK_CRM_1_0_0_277&a=65

This type of offer is where groupon works, there is 75% profit in this type of food, there are supplements to pay for certain foods, also you will probably buy a drink or too at inflated prices, they are putting bums on seats during quiet times when they still have staff and heating and lighting and rates etc still to pay. they will probably reduce portion sizes by atleast 10 % too.

Not a lover of groupon personally for our industry, i think it is taking 100's of thousands of pounds out of our industry, which isnt good, i think it degrades us.
Thankfully they do not operate in my county and hopefully never.

Andrew

With Groupon I think for food it probably works very well, as food at wholesale prices is cheap as chips, a cappochino to make wholesale is about 3-5p yet retails at around £2.00+, how much is a pasta meal wholesale, 60p? yet it retails at around £7.00, even with a Groupon deals they will still make a profit.

With Cc'ing we charge for our time and that's where is fails for contractors who sell their time as then you are working for £14.00 whereas food you can still profit due to costs of ingredients.

Martin

[jasonl]

With food are you not still selling time for the person preparing it?

Its about keeping the equipment , whether it be cc equipment or kitchen equipment busy.

[The Great One]

Hi

Jason, I'm actually on your side.

My point with the food comparision is that food is very cheap wholesale and a greater profit can be made as if you know you have groupon coming in you just add the extra ingredients, the chef etc are there anyway.

Would I do groupon, maybe as i could add it to another marketing stragegy.

Martin

[Warren Aldridge]

The food is like our chems - cheap

Resturants have a bigger outlay and expense to CC'ers.
Those kitchens and staff arent cheap. In fact a restaurant owner would laugh at how cheap 85% of CC setups and running costs are.

Combo van, 3K worth of kit and done. We all have marketing costs

[John Kelly]

Yes but those cooks are already at work and getting paid. So whether they are stood round scratching their arse or cooking food it doesnt matter. If I had a restaurant I would much rather have people sitting on seats and at least making a modicum of profit from them. It also looks good to have a busy place.

But a service like carpet cleaning I still think you are off your trollies!

[derek west]

pasta takes 12 minutes to cook, regardless of how much is in the pan.

thats food for thought don't ya think.

[Billy Russell]

But a service like carpet cleaning I still think you are off your trollies!

Is that the technical term???   

[AJB]

Groupon can only work if you employ staff.
In that situation the labour cost is not part of
the equation, as it was there anyway, so you
are recoupping some of that cost as they are
working when they would have been sitting around
doing nothing, so in real terms it is only costing the
fuel to get to the job, the chem's used and wear and tear
on equipment.
The most hopeful outcome of Groupon is that it greatly
increases awareness of carpet cleaning, and brings more
customers into it. But as long as Groupon is around it will
depress the market by driving prices down.
I've noticed many groupon offers that are total bulls*it price
wise, and no way are the savings what they claim, due to inflated
original prices.

[jasonl]

The first thing they teach you on any business studies course in any marketing effort , always inflate the price before discounting ,  everything we buy at a discount is done like this.

[Hilton]

Groupon can only work if you employ staff.
In that situation the labour cost is not part of
the equation, as it was there anyway, so you
are recoupping some of that cost as they are
working when they would have been sitting around
doing nothing, so in real terms it is only costing the
fuel to get to the job, the chem's used and wear and tear
on equipment.
The most hopeful outcome of Groupon is that it greatly
increases awareness of carpet cleaning, and brings more
customers into it. But as long as Groupon is around it will
depress the market by driving prices down.
I've noticed many groupon offers that are total bulls*it price
wise, and no way are the savings what they claim, due to inflated
original prices.

Labour costs are all ways part of any business equation , you will quickly go tits up if you think along those lines ,if you employ.

If you have staff and they are sitting around doing nothing you would be better laying them off and quickly. If you are relying on groupon to pay them you are in trouble any way. It will cost you every day to send people out to clean, you will, in effect have become a charity.

[The Great One]

The first thing they teach you on any business studies course in any marketing effort , always inflate the price before discounting ,  everything we buy at a discount is done like this.

Spot on, and Tesco is doing this right now with their price war rubbish.

They have even been found to be over £4 more expensive on staple items even with their price war.

Was there the other day and usually detox mould remover £2.57, now £2.91 and it's on sale!

Martin

[JandS]

It works well with food because if you have
the meal and it was delicious you'll probably
go back again knowing it's worth paying full
price. Also it might be you go to the restaurant
again the next month not the next year, and
maybe you take a couple of friends.
With services though it might be a year before
your needed again and they've lost your card
so lets look around for another one.

John

[steven Banks]

Groupon is marketing to the penny pinchers! Who want a good quality carpet cleaning service for next to nowt. Why don't they do a groupon discount for Rug Doctors and let joe public get on with DIY carpet cleaning. Then when they get tired, give a pro a call.

It's not worth the effort for such little reward. I don't think it's worth thinking about, If you think groupon is for you go for it!  If not, market yourself well and do without the hassle.