[John Kelly]

Sorry Jason but I think its a ball aching way to do it.

[cozy]

667 customers on the database , a third will become repeat and referred customers at full price , life time value of those customers is many thousands . I am looking for a business with a client base , not a quick buck today.

Yes mate, but 80000 quids worth of turnover for 13000 is a bit of a loss to gain 222 new customers. You have to get your "Normal" jobs done at the same time. If you think that's good marketing, you're wasted on here. You should work for an advertising agency.

By the way, those 222 would have to bring you 51000 between them in the future, just for you to get back what you lost with the Groupon deal!! Cool   That's only a bit over 200 quid each.

[jasonl]

For a start it is not 80k worth of turnover , it is 667  x£45  jobs which is 30k  , how much does it normally cost to get 667 customers?

Alifetime value of a customer is far more than £200.

[Ian Rochester]

I have my doubts that there will be a third of these who become loyal customers.

People (myself included) buy into Groupon because they are looking for a good deal, we have bought groupons for restaurants and other things in the past, however I wouldn't go back to any of these again and pay full price, I'll just wait for the next Groupon deal, they come on my emails every morning!

Therefore if another carpet cleaner in the same geographic area decides in 12 months time to try Groupon marketing then most of the 667 "loyal" customers will move straight across to them.

What about customer number 667 who bought the groupon to get her carpets done in the next couple of weeks and has now been told it going to be the end of october before they can get round to her?? 

Do you think she is likely to become a loyal customer with that sort of service?

Finally what about the current loyal customer base that has been build up over many years and have always paid full price for the service, they see the groupon deal and feel that they have been basically "robbed" because just the week before the offer they paid full price for the same clean.. or less?

I just think it's a dangerous route to be going down and could seriously devalue a persons business.

[Steve Rothwell]

"Finally what about the current loyal customer base that has been build up over many years and have always paid full price for the service, they see the groupon deal and feel that they have been basically "robbed" because just the week before the offer they paid full price for the same clean.. or less?"

Jason has not got a loyal customer base he has just relocated...

No matter what anyone on here says Jason is going to try the deal, so why don't we just sit back and wait for the results..................... I think some on here may be surprised....

[garyj]

Jason, can you text me the number of the rep you dealt with please.

[Steve Rothwell]

Morning Gary what are you doing up this time of day??
just getting in??
 

[garyj]

Noooo not me    .

[derek west]

jason
whens it going live?

[jasonl]

Going live in 2, 6 and 11 weeks , in a few local cities.

[Steve Rothwell]

Good luck on that Jason

[derek west]

Going live in 2, 6 and 11 weeks , in a few local cities.

£10 says it doesn't

[derek west]

if it does go live in 2 6 and 11 weeks time, (which i still will take the bet that it doesn't)
whats the betting that shaun buys 100 and gets you to do his work for him, happy holiday shaun

[robert meldrum]

I've not read the previous posts on this subject but am well aware of Groupon and similar marketing organisations.
If you have the capacity to deliver a massive increase in your business volume it could work for you, BUT, there are many reports of small businesses being snowed under and simply being unable to supply the service to the majority of enquirers.
The concept is CLEAR..............

GET A MASSIVE DISCOUNT OFF THE USUAL PRICE ............

What do they do the next time they want the service ?

[cozy]

For a start it is not 80k worth of turnover , it is 667  x£45  jobs which is 30k  , how much does it normally cost to get 667 customers?

Alifetime value of a customer is far more than £200.

You need to look again Jason. http://www.groupon.co.uk/deals/london/innovatecarpetcleaning/478784

You get 19.5 quid for each of the  667 jobs.  667 X 120 quid is 80,000. Not when you don't want to see it, but it is in the real world mate. You should earn 120 quid per job, but you only get 39 quid, and half of that goes to the pirates (Groupon). That leaves you with 667 X 19.5 quid = 13006.5 quid.

Hector M I know he's relocated and has no customers. He will have soon if he goes for this scam though. Can't see him coming back in 3 months after working for 85 quid a day and saying "You were right lads, it was a rip off" can you? Because if he gets 667 jobs, how long will he need to clear that much garbage before he has time to get onother customer who's ready to pay "Normal" prices?

If it looks like a good deal to you Hector, why don't you stop cheering Jason on and go get a deal from Groupon for yourself?

Ian Rochester has hit the nail on the head with his post. I'm starting to hope Jason will take the deal now, just to put him out of his misery. People telling him it's worth a try aren't willing to try it themselves. If he can't smell a rat, then good luck.

[Steve Rothwell]

"Hector M I know he's relocated and has no customers. He will have soon if he goes for this scam though. Can't see him coming back in 3 months after working for 85 quid a day and saying "You were right lads, it was a rip off" can you? Because if he gets 667 jobs, how long will he need to clear that much garbage before he has time to get onother customer who's ready to pay "Normal" prices?"

Let's wait and see, and that should have been directed at Jason and not me........

"If it looks like a good deal to you Hector, why don't you stop cheering Jason on and go get a deal from Groupon for yourself?"

Never said it looked like a good deal to me..... you read far too much between the lines.

[cozy]

Jason has not got a loyal customer base he has just relocated...

No matter what anyone on here says Jason is going to try the deal, so why don't we just sit back and wait for the results..................... I think some on here may be surprised....

I read too much between the lines? This looks like you expect a good result. Or have I misunderstood your posts and you think it's a bad deal for him?

[garyj]

I hope it works for him and he comes back here and tells everyone it didn't.

[Helen]

I hope it works for him and he comes back here and tells everyone it didn't.

 
I hope it works for him and I hope he says so too!

The more I look at some of the groupon deals, the more I can see that Jason has put a lot of thought into his offer, being that he has been so specific in his terms!

Some advertised on there are not so specific and may be detremental to the company supplying them or just plain old misleading to the consumer.

[Steve Rothwell]

I do actually expect it to be a good result for Jason for the reasons Helen has pointed out.

I did not say it would be good for me......