Is it just me, or is there too many "half off coupon" companies?

[Kristopher1129]

Had a sit down with a company called Living Social today. Meeting went as they all do which is as follows in a nut shell...

"We want you to offer your services for crazy cheap. Half off in fact. We keep 50%, you keep 50% and we're all happy. Just sign here..."

Same thing as Groupon basically. I recently did something similar to Groupon and Living Social called Couptopia. Couptopia is strictly NH though. So they only deal locally. I did half off of my Silver Package...and I wasn't very enthused when the vehicles started rolling in. I was getting some real rats. Ones that needed to be $300 jobs easily.

So, I did work something out with Living Social. I told them I wouldn't do a full detail of any kind...not even express. I kept it strictly Wash & Wax. That way, I don't get screwed. It will also detour my current customers from buying them, cause they never get a Wash & Wax.

I figure this way, I'll get some new customers. Most likely, they'll want a package. I can upsell them, and let them use the coupon as cash value for what they paid, which would only be $50 ($25 of which I got paid for).

What do you guys think of this? I really feel this makes these type of coupons work in our favor instead of everybody elses for once.

 

[Dr Oldz]

I don't like the idea personally. It may bring business that isn't the type that you really want or can make a profit on. And when you are not making a profit, we tend to rush jobs. In the end someone will spot it and then negative word of mouth may spread. Just my opinion and I am interested to see what others have to say and offer.

 

[Kristopher1129]

I don't like the idea personally. It may bring business that isn't the type that you really want or can make a profit on. And when you are not making a profit, we tend to rush jobs. In the end someone will spot it and then negative word of mouth may spread. Just my opinion and I am interested to see what others have to say and offer.

Yeah, I hear that. That was my problem with the first time I did something like this. I ended up getting crap cars, and wanting to rush through them. But, I stuck to my guns and did good jobs. I ended up with a ton of new regulars. The key is to act like it's any other customer.

It brought in a LOT of new people. Most of which have come in for a second or third vehicle for full price. When stuff like that happens...it's worth it. But most the time, it was a one time deal for somebody who probably would have never gotten their car done otherwise. Those I could do without. Not too mention...a lot of them haven't even been redeemed, and they're all almost expired.

That's why I went with the Wash & Wax only deal. I figure, I'll either not sell many because it's just a Wash & Wax. Or, I'll sell a lot, and they'll either stick to the service or upgrade. If they upgrade...that's the ideal situation for me. If they just want a Wash & Wax...then I'll give them exactly that. I can do a Wash & Wax pretty damn quick.

I just feel safer taking this route. It will keep me from cleaning those rats, ha.

Another thing about these deals is that around here...winter is really tough. So, to run these deals in winter is really no big deal. Worst that happens is I end up with more customers. Plus, if they sell a couple hundred of these things...that's a $5000 check to me. $5000 would get me a new office, ha.

 

[Dugdug]

I had a living social interview today. I'm hoping I get some decent customers.

 

[rwright]

I hate this idea personally. Why would you want to give someone half of your money on a chance that you may or may not pick up additional business? What if that customer went to work one day and the boss said "this week we are offering your labor at half off hoping to pick up more clients and your paycheck will be adjusted to reflect this discount", do you think they would go for that?

 

[Dugdug]

What if that customer went to work one day and the boss said "this week we are offering your labor at half off hoping to pick up more clients and your paycheck will be adjusted to reflect this discount", do you think they would go for that?

Depends, employee, not so much. To the business owner sure. I'm thinking about return customers. I get a chunk of change, up front to further my business. The living social subscribers in my area are over 100,000. 30% of those are people who make over 100K a year. They have dough, and a lot of them have higher end cars. I wouldn't offer a package that would sell 200 coupons for something like a basic detail. I don't want people to look at the deal and be like, "oh 30 bucks for a full detail" those are cheap skates who probly wont return anyways.

 

[rwright]

Most people that use these sites aren't going to be interested in full price anything. That's why they use them. If they were interested then they would have used your services from the beginning.