Groupon is killing my deals- any suggestions?

[Sanchez14]

Hey does anyone have any suggestions on how to handle customers who only use groupon to promote their business? I have found if companies have a current groupon deal it takes them months before they want to advertise again. I am having a difficult time cracking into a certain area of town because of groupon- people seem to not mind taking a bit hit on their profit as long as they don't have to pay money up front.

Also is there a secret I am missing with any businesses related to personal care i.e. hair salons, nail studios, tanning, gyms etc? I am having the hardest time reaching the correct person then selling them on the idea. Everyone sees far too concerned with groupon and living social deals type promotions. Thanks

[Bob Ross]

I've ran into that twice before actually and I landed both of those clients only after staying in contact and revisiting it once their groupon crap was done (about 5 months). I love the idea of groupon as a business, it's gotta be so easy to pitch.

You may be dealing with an actual legitimate concern, they may have too much going on with groupon that they can't handle more business and marketing attention. You may have better luck explaining to them that this is a way for them to get response coming in but without having to fork over such a large % to groupon that could have gone back into the business. That should ring true to them but it still may take some time for them to get past the groupon avalanche that they started.

That doesn't mean there aren't more prospects though, it's highly unlikely groupon is the only place people are spending their money on in that town :)

nail salons, nail studios, tanning, gyms, and those type of businesses are all perfect for our card, they are the places you definitely want advertising (along with food). Again, it's highly unlikely that every other form of advertising has been shut down due to groupon in your area so keep that in mind. Businesses still spend money on different advertising and will continue to do so.

Not one of those businesses enjoy paying groupon all that money that could be in their own pocket (groupon's clever method disguises the fact but you should be reminding them of it). Groupon as a whole tends to attract people who are searching for groupon deals and are unlikely to come back, which is the main problem that businesses have with them. This should be something to find out if it strikes a chord with your prospects.

I'm interested in hearing other people's responses since I'm sure they deal with this as well across the nation.

[xichabodx]

I subscribe to as many Groupon/Living Social-type programs in my area as possible, not to get great deals...but for leads. :)

The key with dealing with any business that implements a deal-of-the-day-type program is following-up with customers that are brought in from them.
This is where SMS marketing works GREAT. Use the deal-of-the-day companies to build yours and your clients' lists.
You have to "strike while the iron's hot", meaning, as soon as you notice a deal is going out, it's best to send an email/call/visit that business as soon as possible.

Even the local versions of Groupon/Living Social are making a KILLING in my areas, as they're charging 50% of sales too.
I've created a site in my local area based on the Groupon model to test out a program.
As of right now, I only have online affiliate offers on there.
However, I'm considering offering my services as such: 10-20% of gross sales (vs. the 50% the others take) AND offering SMS on the back-end (to capture all the leads brought in) for a monthly fee of $97-$125+.

I'm also incorporating a Facebook "Like"/Share feature. Consumers enter their name & email as usual. An email is automatically sent to their address, with instructions on how to redeem their deal. Rather than purchasing the deal upfront, consumers have to "Like" or Share the deal on Facebook in order to get the deal. They are then taken to the landing page to print. If they can't or don't want to print, I also have mobile features as well....simply bring your phone in and show your screen.

If this model fails or isn't successful, I'll simply leave the site for offering online affiliate deals.

So, in short, offer your corresponding services (SMS, postcards, direct mail, etc.) to these businesses and/or create your own more beneficial model.