Clean It Up
UK Floor Cleaning Forum => Carpet Cleaning Forum => Topic started by: The Great One on October 03, 2011, 10:16:51 am
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Hi
Can't believe the lovely groupon posts have been and gone, so thought i'd resurrect one (sort of like that Jesus bloke)
2 sides of the coin:
After three months of Groupons coming through the door, I started to see the results really hurting us financially. There came a time when we literally couldn’t not make payroll because at that point in time we had lost nearly $8,000 with our Groupon campaign. We literally had to take $8,000 out of our personal savings to cover payroll and rent that month. It was sickening, especially after our sales had been rising.
We are also a coffeeshop that used Groupon. Unlike others we studied and decided that the best way to use Groupon was to make it for a very specific buyer - fresh roasted coffee bean buyers. This way we only attracted those customers that knew a good deal when they saw one and eliminated those who just wanted a "freebie". We only sold 165 but have found 80% of those that bought were new customers who had never been in the store and out of those, 20% have been back in to buy more beans! I think it is important to study your market and tie in your promotion with what is truly important to you - your specialty!
So one hurting by offering something that was pricey and another that made a profit, and maybe this is the thing with this type of thing, if you use it make sure you do reseach.
Martin 8)
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Found this interesting post on TMF re. Groupon and a carpet cleaner using it.
http://www.truckmountforums.com/general-carpet-cleaning-and-upholstery-discussion/22183-groupon-and-carpet-cleaners.html#post222859
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How often do you need to have your carpets cleaned?
How often do you need to buy coffee?
The two situations are totally incomparable......
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How often do you need to have your carpets cleaned?
How often do you need to buy coffee?
The two situations are totally incomparable......
every time i go past a drive through, its like i'm on auto pilot. ;D
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I decided to look at our figures to see if it would be financially viable for us to do Groupon, not that I am interested in doing it.
We have all of our fixed expenses ( wages, telephone, internet, accountancy, repairs & renewals, advertising, vehicle insurance and repairs, business insurance etc and variable costs (fuel and materials) on a spreadsheet so we can see to the penny what our breakeven point is per week and from that can calculate our required hourly rate to breakeven point.
We would have to subsidise every hour spent on Groupon jobs by around £13 per hour, that’s a lot of money. Put another way we would be losing £13 per hour on Groupon. Worse still for anyone vat registered, 20% of the money received is vat. Ok, you could up-sell some of them but you would have to do a lot of it to recoup your losses and given that you are dealing with people who have only purchased the coupon because it is so cheap, that may be an uphill struggle. Plus, two rooms and hall is all that most people have done. The argument often muted is that it builds your customer base, I’d argue, no it doesn’t. These people are not your customers; they are Groupon customers and so will probably turn to Groupon for another deal next time around and not you. That makes it a bit of a gamble to hope, and that is all you can do, hope, that these people come back to you a year or two down the track and so recover some of the money lost the first time around.
Someone with a TM would be paying out £5 per hour in TM fuel alone, so even with the added productivity of a TM you’d be better off sitting at home.
The only people who make money out of Groupon – is Groupon and that in my view makes it a mugs game.
Simon
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i agree groupon will want to keep their customers. they're doing a far better job at appealing to customers then the business that use groupon so next year when customers are thinking about getting their carpets done groupon will be fighing to make the customer use groupon again and not you. groupon are obviously good at marketing, and offer good prices to the customer, and do a good job at making the customer trust the service.
for carpet cleaning it doesn't work no way at all.
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Well I think that Groupon is for lazy and unadventurous people that shouldn't be in business. I say that because I started out in this business at what I now consider to be the cheap end of the market. So I know a little bit about the low end of the market.
That's all changed now but what I learned at that end of the demographic spectrum is that it's tough but also it's easy to sell our services at a low price. I used to advertise at £20 per room and leaflet heavily and got lots of work.
The point is. If it's easy to sell carpet cleaning at cheap prices, what does anyone need Groupon for? Just do it for yourself and you won't need to give half your earnings away.
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Well I think that Groupon is for lazy and unadventurous people that shouldn't be in business. I say that because I started out in this business at what I now consider to be the cheap end of the market. So I know a little bit about the low end of the market.
That's all changed now but what I learned at that end of the demographic spectrum is that it's tough but also it's easy to sell our services at a low price. I used to advertise at £20 per room and leaflet heavily and got lots of work.
The point is. If it's easy to sell carpet cleaning at cheap prices, what does anyone need Groupon for? Just do it for yourself and you won't need to give half your earnings away.
Great post!
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I think it is an arrogant and obnoxious post.
You cannot generalise like that...........
People use groupon for many different reasons, it is ignorant and arrogant t@ssers who are small minded that generalise and jump on a bandwagon.
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i think a few that have gone with gaypon i mean groupon are under the illusion they are building a customer list . will be very interesting to see how incredibly useful this list of people who have payed next to nothing actually is .
i would say that repeat business will be low as unless you are prepared to do for reduced rate again they will simply price shop.
remember groupon customers come from impulsive buys attracted by price nothing more nothing less.
the question you have to ask yourself is do you want a list like this .
the other argument people who are in groupon say is they are getting recom from groupon customers surely they want a cheap price too.
its all totally floored
I have a pal who did a groupon deal because he felt he was struggling in july aug . now he is stuggling even more because he tied up so much of his time and actually made a big loss when he took his running costs into the equation .
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back then I see
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And now using your real name......
;D
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gone with gaypon
used to say things like that when I was at school............
still posting the usual shyte then Richard..
;D
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Oh yes......................................... welcome back
8) 8) 8)
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I think it is an arrogant and obnoxious post.
You cannot generalise like that...........
People use groupon for many different reasons, it is ignorant and arrogant t@ssers who are small minded that generalise and jump on a bandwagon.
That's a bit harsh isn't it. I guess the part about being unadventurous and shouldn't be in business hit a raw nerve with you. I am sorry if you thought I was singling you out. The argument really is the truth though. It is very easy to pick up low end work. Just get off your fat ass and do it for yourself. You don't need Groupon.
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I slated Groupon on FB yesterday and got a response from someone who uses Groupon.
It seems to work for their business, maybe we're all just scared of what we don't fully understand. I certainly don't fully understand Groupon so really, I shouldn't really cast my ill informed opinions... Apart from this one of course.... :D
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It works in different ways for different people Colin..
depends what you wish out of it......
It did for me what it needed to...
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Well I think that Groupon is for lazy and unadventurous people that shouldn't be in business. I say that because I started out in this business at what I now consider to be the cheap end of the market. So I know a little bit about the low end of the market.
That's all changed now but what I learned at that end of the demographic spectrum is that it's tough but also it's easy to sell our services at a low price. I used to advertise at £20 per room and leaflet heavily and got lots of work.
The point is. If it's easy to sell carpet cleaning at cheap prices, what does anyone need Groupon for? Just do it for yourself and you won't need to give half your earnings away.
That's a good point really. The difference is, I suppose, is Groupon have a bigger presence on the net and more listed customers waiting to get offers or at least checking the offers on a regular basis.
Apart from that, yeah, why not just advertise yourself at 15 quid a room etc?
Not for me though, I'll crack on without Groupon thanks very much.
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Nevil
From my long life experience I've found that people who communicate in the way you have done above are usually frightened of something which the see as threatening.
The likes of Groupon and the others that will surely appear as a result of their success should always be looked upon as an opportunity.
Anyone using this method of business generation and having the guts to post about their experiences should be applauded rather than criticised.
How you equate someone prepared to work as hard as required to get through the volume this marketing as LAZY and UNADVENTUROUS is a beyond me when by showing a willingness to experiment and have a go
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http://www.groupon.co.uk/deals/national-deal/bluetooth-world/1085643?nlp=&CID=UK_CRM_1_0_0_281&a=1664
Had this offer from our friend Groupon today ;D
Handy piece of kit mainly because im sick of pulling van over when im driving for sales calls.
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Nevil
From my long life experience I've found that people who communicate in the way you have done above are usually frightened of something which the see as threatening.
The likes of Groupon and the others that will surely appear as a result of their success should always be looked upon as an opportunity.
Anyone using this method of business generation and having the guts to post about their experiences should be applauded rather than criticised.
How you equate someone prepared to work as hard as required to get through the volume this marketing as LAZY and UNADVENTUROUS is a beyond me when by showing a willingness to experiment and have a go
Utter rubbish. Not remotely frightened by people looking for work at these prices. As I said I started low and in the beginning I certainly was frightened by not getting anything in the diary at all. And I will be again if things get bad and work becomes scarce. I would go as far as to say starting low is much easier to get into the marketplace and it's easier to build a business that way. Then as your competence grows along with the workload you can adjust prices. My point is, allowing Groupon to take half the money when the prices are already very low is daft. You don't need groupon. The only thing they give you is that you don't have to shell out for marketing up front but you are paying a very high price for that. Have your own special offer. Advertise £15 a room yourself making it very clear that the product is very high quality, it's a one off special and that it's discounted from a higher price. Then get out and push it. I really am no expert but I built my decent little business by getting out there and pushing it. I used to work full time to bring work in and would again in the blink of an eye if needed. But I wouldn't be shelling out half the money generated to anyone because it's not necessary. Just do it yourself. No offence intended to anyone.
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Group on is a lazy way of getting work if you expect to make a living from it's 'raw' prices, you need to get the customer to ask for add ons that's how to increase the average job ticket. Jason explained to me how it works and it's not that dissimilar to Joe polish's free room clean (which everyone dissed)
Shaun
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Hi Guys
CC is a difficult business to get established in but the rewards are good if you can.
Does Groupon help?
I think the prices are just too cheap, if you were getting £50 per job, so £25 to you at least it would cover costs and leave a little beer money but at £29 you are making a loss.
Groupon probably works quite well for a restaurant who want to fill places but anyone has to be careful that they do not get a cheap reputation.
Cheers
Doug
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but at £29 you are making a loss.
Rather a sweeping statement there..................
You may make a loss at that Doug ...............
but not everyone has the same costs to begin with .................
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Interesting to see there are so many experts who have not tried groupon but seem to know everything about it, how much you will lose, or make, how hard you will work, or not, how rubbish your business must be! The only people who ae qualified to do this are those who have tried and tested it the rest of us would and in most cases talking total bs because they have no knowledge as they have not done it.
I say well done to those who have tried it and have come on here and been willing to share their experience with us, surely thats what forums are all about, but all that happens here is that you share information and then get slated for it, your business is b@@@@@@s, you shouldn't be in business, your telling porkies!
Absolutely no respect for people who owe you nothing but are willing to share with
you, shame on you.
Difference of opinions is one thing, disrespect is something completely different.
Tony
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thank you Robert and thank you Tony
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Groupon for ya!
Shaun
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Hey i like the look of jason's assistant behind him in the stockings ;D
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400M2 in 3 hours with 3 of us working , and a very very delighted Marks and spencers manager
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Jason are you wearing an m and s shirt too.......................Alan
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Looking at Jasons eyes it looks like he's watching for security coming. Quick get the photo and lets get out. ;D
Only joking Jason :)
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I'm running a cleaning business in Dublin doing car valeting, carpeting, upholstery and tile grout. I've just finished run of 200 car valets with a variant of groupon and the results have been mixed.
About 5% of units processed are in dire condition, but the majority have been fairly ok. The work has generated about another 20% in turnover over the last three weeks and I'm hoping that I'll get about 20 more leads from the scheme.
It hasn't been a cake walk but it is profitable! :)
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I'm running a cleaning business in Dublin doing car valeting, carpeting, upholstery and tile grout. I've just finished run of 200 car valets with a variant of groupon and the results have been mixed.
About 5% of units processed are in dire condition, but the majority have been fairly ok. The work has generated about another 20% in turnover over the last three weeks and I'm hoping that I'll get about 20 more leads from the scheme.
It hasn't been a cake walk but it is profitable! :)
which one was it? living social? kgb? or are there others around Dublin. seems to be a new lot springing up every day here :)
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wowcher is the latest one, seen it advertised on tv yesterday. hopefully they'll all flog them selves to death. ;D
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There will prob be another in the pipline too i guess.
Great for half price pizas mind ;D
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I'm afraid it's the way marketing is going although there will be variations on the theme as more companies get involved.
Every cloud however has a silver lining and it's just a case of figuring out how your own business can respond to such crazy - to carpet cleaners - but very appealing - to prospects, prices.
If you consider how Groupon, etc reach their prospective buyers and stimulate their interest you will be on your way but ...............you must be prepared to make them an OFFER every time.
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i suppose with all these companies popping up they,ll have to compete for business and that may give the operator better scope for negotiation.
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Maybe they will drench the market and even stop them moving into any other businesses.
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First oven cleaning offer I have seen, today in manchester 19 quid for a two hour oven clean, had three cancel for next week already, its a joke.
I phoned the company to book in my own oven and they informed me that they dont normally do oven cleaning but someone from the sales team would be in touch, blah de blah de blah, that was 10am, still waiting.
Do they take 35% + vat, if thats the case, the operator will be getting £11.02 per job, for two hours.
MCM
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if £19 is what the custy pays,the operator will get £9.50, -£1.90 for tax + £7.60..
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almost
£9.50 minus £3.80 tax at 20% leaves
£5.70 for the 2 hour clean
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Hector
how do you get to that figure, I thought it was £19, less 35% + the vat hence 19-6.65= 12.35 less 20% = £9.88, forgive me if I am wrong I am not starting a debate just trying to understand how it works.
MCM
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no worries
groupon usually take 50% = 9.50
then they take VAT @20% = 3.80
which means that they take 13.30
maths problems ............... easy
why I went with groupon ? ??
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You can negotiate with Groupon , they say 50% first , you can get a much better deal though .
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Mike
Your taxed on what you earn i.e. £19.
Not what's left after Groupon cut.
Worth it.......................I think not.
John
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Just had a woman call me wanting to know if I can beat jason's groupon price and she divided the deal up and wanted only one carpet cleaned :o I gave her my normal price I think she went into AnaphylAtic shock ;D
Shaun
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Just had a woman call me wanting to know if I can beat jason's groupon price and she divided the deal up and wanted only one carpet cleaned :o I gave her my normal price I think she went into AnaphylAtic shock ;D
Shaun
Ducks a*se comes to mind..
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I'm not so sure if it is I think it could be peoples competitive nature but I did hear her husband shouting things like "stand back" and "clear" also "10cc's" aswell as "get a priest" obviously not one of my customers neither one Jason's or Groupons infact not even a rugdoctor customer.
Shaun
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I'm not so sure if it is I think it could be peoples competitive nature but I did hear her husband shouting things like "stand back" and "clear" also "10cc's" aswell as "get a priest" obviously not one of my customers neither one Jason's or Groupons infact not even a rugdoctor customer.
Shaun
we all need to train in CPR and make sure we get the adddress before we give our price...we could all be heroes then ;D ;D ;D
Obviously this person did not read Jason groupon deal through. What did she expect one carpet for £11.00.....................lol
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I think she read it and thought that she could dictate the price unfortunately some people think because there's a recession that they can tell us what they want to pay and most probably what quality they want and also that if they aren't 100% happy that they won't pay or keep calling you back.
Shaun
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Simple rule when customers compare prices.
Tell them you get what you pay for, and there's a reason why someone will offer £20 for a carpet clean......they are either cr-p at it or will be pressure upsell when they get to you. That usually focuses their mind for me ;D
I don't care if it's true or not, this is business and we're in it for ourselves.
**awaits onslaught from Moanie Fridays** ;D
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but the next time you use them foggers youve got, advise your friendly local fire station, full time or retained.... they are all only trying to save lives and property.
The purpose of that thread was to keep the readers attention whilst bringing to them that you need to make sure all bases are covered, otherwise that is what could happen.
I'm not pleased that they came out (for the reasons you gave) and was pretty well embaressed about it, but what's done is done and others reading it should hopefully learn from it. ;)
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most groupons so far have had stairs cleaned which my helper does while i clean other carpets .... Most do not have the 3 cleaned most we are done in under an hour and are paid 50 min no selling just simple confirming the add on prices which were clearly stated in the deal it will not make us rich just a decent profit and a better customer list