Living Social = Living Nightmare

[Flash Gordon]

Flash, I realize you weren't seeing what I was saying initially, and I did my best to make my viewpoint understandable. Perhaps you still aren't understanding where I'm coming from? Or perhaps I'm not understanding the basis for your viewpoint either?

I don't get the whole "friendships fade out" deal... sorry if you're offended, that's not my intent.

I think where the confusion is coming in, is that I wouldn't list a price on anything I would base my rate on an hourly basis and that would be the end to that

Now, just from just having previous expierence, I can pretty much guestimate how many hours it will take to do a particular job, so if the customer wants, they can contact me by phone or email for consultation or we could arrange to view the vehicle in question

Fade out.....thats just when you have a disagreement with someone online that untill that point you felt like you had a pretty good relationship with/friend. After the disagreement a certain level of hostility follows or they just don't respond to you at all anymore. When this use to happen, it really frustrated me, now I think its very amusing. Its amazing how easily some ppl's feelings get hurt. They were never my friend in the first place is the way I see it

Your doing great though Charles! Hangin in there like a real champ!



I don't know how to disect a quote like you did, so I will answer a little bit at a time

 

[Flash Gordon]

This is one of those things that doesn't work for everybody. If you are not a legitimate full time detailer...it's probably not for you.

If you want to be part time, then be part time. Why do something like this for 1/3 of the price you'd normally get...when you are only doing 2 or 3 vehicles a week anyways. If your that slow, then just charge for your service and let word of mouth be your growth (IF that's what you want).

But, for a full time business owner who wants to grow, and grow fast...these Living Social type deals can be great. I've used them many times, and have been plenty successful.

It gets under my skin when I read these people bashing it who are part time, and have NEVER even used it. Fact is...you get a high number of clients quickly, for absolutely no out of pocket expense, and you get a check paid to you! You tell me one more form of advertisement that will do that for you...and I'll shake your hand. There's none. You have to offer a good deal to attract attention. It's a sacrifice, but when done well...can work for you.

If you're not serious about bringing in volume...then don't bother. If you're not prepared to handle the work, then again...don't bother. If you're not willing to sacrifice a little cash, to bring in more cash in the future...then don't bother.

Egos will hold you down. Just cause you normally get paid a certain amount, doesn't mean you can't throw a deal out there to grow. It works, and I've done it multiple times, and will continue to do so. I've grown my clientele nearly 50% using these types of services.

People hear my business name constantly around my area. I get asked ALL the time..."you must spend a lot on advertising, huh?". The answer is...I spend zero. Radio ads are free, LivingSocial pays me, Couptopia pays me...done deal. It's a flat out smart business move.

The secret is to not let the system take advantage of you. Be smart about what you let them offer. You don't want to sell 600...that just sucks. But, you want to sell a manageable amount. I only offer things like Wash & Wax, or express type services. They're quick, easy, take less than an hour, and are great ways to get peoples foot in the door.

Let them use the value for cash towards a higher service. Most the time...that's what happens. Sure, customer gets $50 off or whatever it is...but look who made more money, and gained an extra customer or two. That's how you do it IMO.

A side note as well: Doubling your price after you've made a deal with LivingSocial is not something they allow. They usually require a website that they review before approving any deal. If you go and double your price, they'll notice, or a customer will notice...and it's a breach of contract.

Lots a intresting points Kris. I will disect and submit my responses as soon as I get done with Charles

 

[southbeach]

I sold over 3000 wash on these daily deal site and I will never do it again.....yes I received a check for about $30k but it is not worth it....
First, you degrade your service and quality....2nd, you will pay more payroll because of the extra vehicles...and 3rd, you will pay more for chemical and supplies......


Do not do it guy...the money and unit will temp you....but it is a bad idea...

Most ppl that buy these voucher will not come to you again unless you offer a deal....

 

[Flash Gordon]

Based on the instruction Garry Dean received from a Living Social representative (and assuming the same instruction goes to anyone they work with to offer a deal), if a basic detail package lists for $60-80, the advertised range would have to slide up to $120-160 for that same package -- double the price, but not double the value to a retail customer (not to be confused with a Living Social customer). That's still not advertising a set price, and you still have the ability to build variance into a quote based on vehicle size/condition/etc.

If you base your rate hourly, you could avoid this confusion. It took me along time to figure this out as well

 

[Flash Gordon]

You can certainly hit your target revenue from a Living Social deal by raising your listed price ranges/starting prices, but you'd be putting a lot of eggs in one basket that way. The opportunity cost for attracting LS customers is potentially driving away customers who come to you from sources other than LS because of your price listings.

If you base your rate on an hourly basis you could avoid this confusion

 

[Flash Gordon]

Well, yes, if you double your regular prices so your LS deal ends up being your "original" retail price disguised as a discount, you probably avoid bargain shoppers to an extent, and likely sell fewer LS coupons as well. What happens when the LS deal ends, though? Are you just going to lower your listed retail price ranges or starting prices back down to the original value?

If you base your rate on an hourly basis you could avoid this confusion

 

[Flash Gordon]

If so, you have to remember that people aren't blind -- it would look shady as hell to do that, and probably turn customers off. Once you've doubled your prices, you have committed to those being your retail prices.

If you base your rate on an hourly basis you could avoid this confusion

 

[C. Charles Hahn]

If you base your rate on an hourly basis you could avoid this confusion

Understood... and I'm actually moving to that type of business model as well for the majority of services. The question though is, are you suggesting that the Living Social deal would advertise a reduced hourly rate?

 

[Kristopher1129]

Lots a intresting points Kris. I will disect and submit my responses as soon as I get done with Charles

Of course. First things first, ha.

 

[tw33k2514]

I am nowhere near the point of taking on one of these deal sites, but let me just say that I really appreciate all the insight on the subject.

Some very good points all around. Reading stuff like this just makes me more hungry to grow to the point where this would be a viable option.

 

[Flash Gordon]

This is one of those things that doesn't work for everybody. If you are not a legitimate full time detailer...it's probably not for you.

If you want to be part time, then be part time. Why do something like this for 1/3 of the price you'd normally get...when you are only doing 2 or 3 vehicles a week anyways. If your that slow, then just charge for your service and let word of mouth be your growth (IF that's what you want).

But, for a full time business owner who wants to grow, and grow fast...these Living Social type deals can be great. I've used them many times, and have been plenty successful.

:iagree:

I think it would be especially difficult for mobile detailers as well

 

[Flash Gordon]

I like using bold print....makes me feel important

 

[Flash Gordon]

It gets under my skin when I read these people bashing it who are part time, and have NEVER even used it. Fact is...you get a high number of clients quickly, for absolutely no out of pocket expense, and you get a check paid to you! You tell me one more form of advertisement that will do that for you...and I'll shake your hand. There's none. You have to offer a good deal to attract attention. It's a sacrifice, but when done well...can work for you.

If you're not serious about bringing in volume...then don't bother. If you're not prepared to handle the work, then again...don't bother. If you're not willing to sacrifice a little cash, to bring in more cash in the future...then don't bother.

Well said Kris :applause:

I for one have never used a service like this, so anything I have to say is pure speculation. I appreciate you adding your first hand expierence to this thread :righton:

 

[Black Car]

It's crazy these sites can get away with taking HALF of the money. It seems like 50% is very steep for using one's internet coupon service.

 

[Flash Gordon]

Egos will hold you down. Just cause you normally get paid a certain amount, doesn't mean you can't throw a deal out there to grow. It works, and I've done it multiple times, and will continue to do so. I've grown my clientele nearly 50% using these types of services.

People hear my business name constantly around my area. I get asked ALL the time..."you must spend a lot on advertising, huh?". The answer is...I spend zero. Radio ads are free, LivingSocial pays me, Couptopia pays me...done deal. It's a flat out smart business move.

Growing a business 50% by offering 50% off sounds like a 100% smart business move

The only concerns I have would be alot of these ppl would want that same deal everytime, or just never hear from them again period

T.V. and Radio advertising isn't cheap, so I can see where one could justify a reduced rate for that kinda exposure

 

[Kristopher1129]

:iagree:

I think it would be especially difficult for mobile detailers as well

Absolutely, I did mean to mention that. Offering this deal and intending to do all the services via mobile...I'd stay away from that. Cause then you have a whole new situation. You'll spend in gas what you got paid for the coupon, ha. A shop really makes this work.

I like using bold print....makes me feel important

It does. :xyxthumbs:

Well said Kris :applause:

I for one have never used a service like this, so anything I have to say is pure speculation. I appreciate you adding your first hand expierence to this thread :righton:

I just wanted to show the other side of the story.

It's crazy these sites can get away with taking HALF of the money. It seems like 50% is very steep for using one's internet coupon service.

They don't all take 50%. But LivingSocial, and Groupon do. You can find local coupon sites that will take less of a percentage.

 

[Kristopher1129]

Growing a business 50% by offering 50% off sounds like a 100% smart business move

The only concerns I have would be alot of these ppl would want that same deal everytime, or just never hear from them again period

T.V. and Radio advertising isn't cheap, so I can see where one could justify a reduced rate for that kinda exposure

You'll always end up with those people that are strictly there for the deal. But, from what I've experienced...I've accumulated a lot of clients that don't mind paying.

Around me, detailing is scarce. So most of these people are seeking a good detailer they can rely on. In most cases, they are simply trying me out because of the deal...not because they're cheap and don't want to pay a good detailer. To them...it's worth the money to try out my business. That's the reason I like these companies, and why it's worth them taking 50%.

Besides, all I offered was a Wash & Wax. Never offer anything involving the interior...cause you'll regret it. Learned that the hard way.

If they don't want a Wash & Wax, then let them use it for cash value. I actually made multiple appointments while the deal was running. People saw the deal, saw what the service was, and wanted more than that...they in turn chose not to even purchase the coupon and make a direct appointment with me.

Don't get me wrong, these deals CAN screw you. It's just all about how you plan it out. Don't let them plan it for you. Cause they'll take your best package, and want you to offer it for half off. But, they don't realize how much time is involved. Pick something you are comfortable doing efficiently and quickly.

Like for me with a Wash & Wax, I chose that cause it takes less than an hour. No clay involved, and I stress in the deal that it is a "Paint only service". By paint only, I mean it's literally a Wash & Wax...nothing else. No windows, no trim, no clay, no tire shine, no polishing, etc. We'll remove things such as tree sap, paint transfer, or tar...that's it. It's a good entry level service...and people don't mind spending a few bucks to get their vehicle waxed.

Another thing about LivingSocial is that they actually have a pretty good approval program. Meaning, they don't just take any old business. They require a website, and usually have to contact you, not vice versa. They obviously seek out companies with good reputations for obvious reasons. If you have great feedback...they'll sell more coupons for you, and them.

That being said, this looks good for you as well. People see your business name, and know that LivingSocial has chosen you as a reputable business. Lots of people feel comfortable working through LivingSocial, and will think higher of your company for doing so. Sounds crazy...but it's true. I don't know how many times I've heard people say "I saw your deal on LivingSocial", but they never even bought a coupon. They're simply making an appointment because they saw my ad.

 

[C. Charles Hahn]

Around me, detailing is scarce. So most of these people are seeking a good detailer they can rely on.

And THAT is the key point -- it really, really depends on your market and what it will bear.

 

[Flash Gordon]

The secret is to not let the system take advantage of you. Be smart about what you let them offer. You don't want to sell 600...that just sucks. But, you want to sell a manageable amount. I only offer things like Wash & Wax, or express type services. They're quick, easy, take less than an hour, and are great ways to get peoples foot in the door.

Let them use the value for cash towards a higher service. Most the time...that's what happens. Sure, customer gets $50 off or whatever it is...but look who made more money, and gained an extra customer or two. That's how you do it IMO.

Sounds like you've got the system figured out Kris

I too would only offer minimal services and rely on my charm and uncanny ability to educate and upsale

 

[Flash Gordon]

A side note as well: Doubling your price after you've made a deal with LivingSocial is not something they allow. They usually require a website that they review before approving any deal. If you go and double your price, they'll notice, or a customer will notice...and it's a breach of contract.

I would defintley stick with the price that was agreed on, but as stated earlier, I would never post prices on a website