Using daily deals

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Permalink Reply by Lee Edelberg on December 12, 2012 at 9:01pm

Candice, there have been a couple of longish threads about Groupon and that other common one (I can't remember the name).

Have you tried typing "Groupon" into the forum search box?

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Permalink Reply by Vincent Russel on December 25, 2012 at 7:09am

You would be frustrated. You better concentrate on any one of the alternative. Doing both the things at a time will make you very tensed.

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Permalink Reply by Eva Leighton on December 25, 2012 at 10:08pm

I have used Groupon in the past with mixed results. About 50% returned for a full priced treatment, and maybe 15% have returned more than 4 times. I no longer offer deals because there are so many "deal" sites and so many customers are just looking for the deals and not a therapist they can build a relationship with. Here in Denver, you will see the same studios offering deals every two to three to four months - selling hundreds if not thousands of deals. I can see how a new therapist would benefit - but you do need to be realistic in the number of clients you will be able to serve. If someone has to wait three or four months before they can book their deal, then you have sold too many. The clientele I serve are not looking for discounts, they are looking for a knowledgeable therapist. I see the majority of my clients at least once a week so I am very lucky to have a solid client base. 

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Permalink Reply by willows_of_saturn on December 26, 2012 at 9:15am

It may be worth it even if you are working four days a week, depending on how much business you're actually doing in those days. You won't really make any money off of the deal itself, that much is certain, because the whole idea is to offer a huge discount, and then of course the website gets their cut on top of that. The goal is to increase the flow of the people in and out your door in the hopes that you'll catch some of those people and they'll keep seeking your services after they have used up the deal. So if anything you'll need to arrange beforehand the maximum amount of vouchers you're willing to sell, and you'll probably face pressure from the company to sell a lot more. The problem is that if you sell too many and now suddenly your schedule is jam-packed, you won't be accustomed to doing so much work and you won't be too disposed to give the excellent quality of service necessary to hook the few customers that would otherwise be interested in returning for more.

I've been involved with using this type of promotion for another type of business and it worked out well because enough people came back for more sessions, and the influx of traffic was also great for building experience working with all kinds of different people...

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Permalink Reply by Relax & Rejuvenate on December 26, 2012 at 11:55am

Think of daily deals as just another form of advertising. You are paying Groupon et al the combination of a discount and their % of the revenue to EXPOSE YOU to potential customers.

 

In the good old days, media outlets wanting you to advertize with them would give you a "Simmons Report" which laid out who the audience was -- demographics, income, how they use the media, etc.

 

If there were a Simmons Report for the Deal Site industry, it would pretty much read "Consumers who are not loyal -- not even to the deal site -- and who typically cannot afford the good or service they are purchasing at its retail price"

 

is this a desirable demographic for you? If not, then don't spend your advertising dollar with them. The majority see massage and spa services as a treat, not a treatment. Repeat customers see it as a treatment.

 

I hate the deal sites, but I have found uses for them. But a hotel-based establishment with employees guaranteed an hourly rate, has a much different economic model and needs than a sole practitioner.

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Permalink Reply by Jed Heneberry on December 26, 2012 at 4:24pm

Here's a good article on how to use / whether or not to use a Daily Deal: http://www.massageandbodyworkdigital.com/issue/81195/88

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Permalink Reply by Jimswife on December 28, 2012 at 6:42pm

The office I work at uses Groupon and Living Social. I suppose its good for the massage therapists. It can keep our schedule full during slow periods. BUT it's rare to have clients return and pay full price. I have had them tell me that they just go place to place using Groupon deals. The office does offer the client the option to purchase another massage for the same price if they prepay for it before they leave.

So if you do use it make sure that the price you offer is at least a decent profit for yourself. Meaning- don't price it so low that its not worth your time. And consider offering the client the option to purchase another massage for the discounted price before leaving.

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