Clean It Up
UK Floor Cleaning Forum => Carpet Cleaning Forum => Topic started by: Jamie Lindsay on October 03, 2011, 03:38:22 pm
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As groupon seems to be topic of the topic of the year
went into house today and person said they booked this weeks ago...
http://www.groupon.co.uk/deals/glasgow/the-greener-cleaners/811542
So I said What Happened? They explain that every time they call to book there was no reply
so I said did they have a web page (as we all do)
They said hold on I will get it for you and this appears
http://www.thegreenercleaners.co.uk/
Does groupon pay out 50% of the money received when you start the work ?
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Once you have a batch of voucher codes collected from customers , you send them via email to Groupon , who deposit the value into your bank account .
Any work carried out privately in excess of the offer is paid on the day by the customer .
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thanks jason... I know living social do the 50% couple week later but didn't know about groupon
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No Wonder the stopped trading!! :o :o
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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 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
Absolutely spot on Mr FFPEC ;D