[Mighti clean]

We have Groupy here in New Zealand and we used them this year for branding and gain a market. We sold at about 50% discount and Groupy took 20% off for their costs.


We probably wouldn't wouldn't use them again.

[robert meldrum]

From the adverts I've checked and some comments posted I get the impression the service provider decides on the deal he wishes Groupon to market.

One has appeared in the Glasgow area offering a " half price deal " ................£70 / usual price £150.

They've sold out at 191 deals.

[David_Annable]

Hi

We had one in Manchester, not Groupon one of the others offering a Deal at £19 per room.

On his website he offers £19 per room, so where is the discount.

I think that given a couple of years these sites will get a bad name for this kind of thing!

Dave

[The Great One]

Hi

With groupon who sets the price?

If the Cc sets the price they can say 2 rooms 5x4m £88, now 1/2 price £44, still cheap but better than £27 for them both and a statement that any other work is charged at normal rate. what's groupon %, 50%?

Just an idea that it can be used but just put up the original price therefore earning more, say 4 jobs a day at £44 that's £176 a day which is not too shabby.

Martin

[John Kelly]

Yes but you don't get the £44.

[Steve Rothwell]

groupon's standard fee is 50% of the offer price + VAT

[John Kelly]

Martin they would get £70.40 for 4 jobs per day thats £352 for 5 days work. That should be nearer a days work. They would need to upsell a lot but then they wouldn't be able to fit as many jobs in.

[Mighti clean]

I guess its useful when there is a slow down as in winter, or you're trying to get your brand known and drive traffic to your website from links on the deal website. But it's a lot of money to give away if you're an established company.

[JandS]

And your paying their VAT.
What's that all about?

John

[Buckland]

John.

Lots of funny business surrounding the Groupon phenomenon but the VAT issue is NOT one of them

VAT is not a tax on business (unless you have decided not to register because you fall below the threshold)

VAT is a tax on ordinary consumers - all registered businesses can reclaim the VAT as part of their ordinary VAT return

It has always been so since UK adopted VAT in 1973...

[John Kelly]

They will be vat registered so have to charge vat as the customer is buying the service from Groupon not the carpet cleaner.

[David Hunt]

Hi all, new commer to the forum.
I looked at Groupon also, you have to offer at least 60% discount and groupon take half of it plus vat. If you are not vat registered it will kill you.

It only seems to work of you have an e-product that can be delivered for free or you rely upon getting substantial lifetime value from the numerous new customers you will acquire.

[John Kelly]

It is designed for hotels and restaurants to fill quiet periods. Also usefull for some retailers to shift sticking stock. In my view any service provider utilising it is bonkers.

[Paul W Jones]

I agree. 

[clinton]

Second that what john has said..

Some restaurants put these discount customers in the back of the establishment..

[JandS]

Your still paying their VAT unless you put VAT on
your price.
Like said if not VAT registered it's a killer.
£100 job 60% off = £40    they get £20 + £4 vat.
You get £16.
So it's actually an 84% off job to you.
Crazy.

John

[John Kelly]

John you've never really grasped this VAT thing have you. It is a tax which is payable on nearly everything. The only people who haven't got to charge it are businesses who's turnover is below the VAT threshold which is around 70k I think at the minute. Also a few items are exempt like kids clothes.
If your turnover is over that limit you must charge VAT. The amount of VAT you recieve from the customer is not yours, it goes to the government. However if you are VAT registered you can also claim the VAT back you have paid out on chemicals, fuel etc etc. The difference at the end of every quarter is paid to the government. Sometimes if you have bought say a new van or truckmount you may have paid more VAT than you have recieved from your customers so you get a refund from the government.
Groupon are selling vouchers for carpet cleaning the price they sell them at has to include VAT by law. When the carpet cleaner redeems them to groupon he gets paid what ever the deal was worth.

[Paul H]

John - about time you shifted some of that sticking stock on groupon! lol 

[Matt Gibson]

I know a guy who has just started a CC company in Glasgow and he went straight for Groupon. They basically told him what he could and couldnt offer as a discount and wrote the whole speiel for his offer. He had very little imput towards it.

Yes, he was flooded for work, and yes, he was working his arse off day in day out, but he did it to build up a customer base, and in this way i think it works quite well.

Also, he has been upselling like crazy and has been very succesfull with that part of it. It seems that while you are there, with all your kit set up and running, if you price the upsell right, 99% of the time you get it, and alot of the time it was cash for him.

So all in all, it serves a purpose for certain ppl in ANY industry.

[Aquakleen Restoration Services]

Had a customer booked in for tomorrow. Lives in an extremely affluent area of Newcastle. Husband is a rich banker. Millionaires. 8 bedroom house etc.... Rung me today to ask if I could beat Groupon 2 carpets cleaned for £26.