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Thread: Are you "Grouponing" or "Couponing" your way to destitution?

  1. #1
    VIP Member Maggie David's Avatar
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    Nov 2012
    Location
    NSW, Australia
    Posts
    17

    Smile Are you "Grouponing" or "Couponing" your way to destitution?

    Here in NSW some years ago, there used to be a Steak and Ale Chain of Restaurants called "The Black Stump".

    Food was great, atmosphere great, the service out of this world. Clientèle, fantastic. Tables nearly always full, what-ever day or time you ate. You couldn't wish for a better "Moderately" priced place to eat! I used to love to go to these. The steaks were always cooked to perfection, in fact I had a date every Friday Lunch time to meet up with colleagues for a long lunch (we were all Doctors and Social Workers and worked long hard hours, and used these lunches for support).

    Each of us would invariably book other times with our partners to come and eat and enjoy the fantastic food.

    To us they need not have gone into the "Buy one get one free" discounting, you used to find on the back of supermarket check out lists. but they started doing this. At one point we asked one of the managers, and he agreed with us, that the head office decision was stupid, he couldn't really fit any more clients in, and wondered why the decision was to start when the chain was doing well.

    The service started to fall, the food started to deteriorate, and the only way we then would eat their was if we had a coupon....when you booked, they used to ask, "Do you have a coupon?"

    This was the downfall of this company, they ended up in liquidation because they "Couponed" their way out of business. STUPID!

    Now let's get on to you? Are you doing the same thing?

    The daily deal coupons you can get into are OK, and maybe for a very short time, and for use with a very limited amount of people are Ok, however, if you only rely on these to bring in customers, then you can severely damage your business to the point where you go out of business.

    You tell the company you are dealing with in advance how many special deals to sell at XYZ price, but what if they don't?? What if you got your numbers wrong??

    There is a very good article, of one such Salon in Perth that "Grouponed" her dreams into dust.

    If you would like a copy of this article, then please Private Message me with your details and I will forward it to you.

    Also if you are using daily deals, coupons, etc, please let us know your story.

    We feel there are so many other ways you can bring in clients....

  2. #2
    Manager of North American Operations for ESM Kevin Perry's Avatar
    Join Date
    Nov 2012
    Location
    Ontario, Canada
    Posts
    27
    Keep in mind that the people taking advantage of these coupons or Groupons are 'deal seekers' and will go wherever the deal is. These type of people do not make good long term customers as they will pack up and leave when another deal pops up at another salon.

    Instead of price cutting, work on 'value adding'. What can you add to your offer to make it stand out amongst your competitors?

    Kevin
    Manager of North American Operations for Expert Salon Marketing
    Contact us for a FREE assessment of your website and/or Facebook page

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