230 replies to this topic

[pontcanna]

Good Logan's groupon today - $25 value for $12. Great stocking stuffers for my (adult) kids

[sebberry]

So I spoke to the Victoria Groupon rep today. Well, she is in Chicago, but she takes care if Victoria.

For restaurants, they take 50% of the sales. So if your deal is $30 worth of stuff for $15, you get $7.50. 80% of the coupons are redeemed, fully 20% never get used.

So....

1000 sales x $7.50.

800 redeemed, so you give out $24,000 at full retail and yo get $7500 for your troubles.

Groupon pays the business by cheque, 1/3 the day after the deal closes, then 1/3 at 30 days out, then another 1/3 at 60 days out. This way they can make sure they are not hearing back from clients that report having trouble redeeming their coupons, and allows them to make 100% returns to anyone not satisfied.

Groupon has 43,000 Victoria email addys.

I wonder how long that will be sustainable for. I mean, businesses are complaining about the 3% Visa/MC fees...

[RPPB]

From Wikipedia: According to a report in Forbes Magazine and reported by the Wall Street Journal, Groupon is projected to "make $1 billion in sales faster than any other business, ever".

Merchants may not be able to avoid credit card fees but they only have to deal with Groupon and companies like it if they choose to. Nautical Nellies had an offer last week and sold over 1000 of them. The certificates expire in mid-June 2011 which means an average 5+ tables per night until then. Not bad...

So far, I have bought 2 x $40 Body Shop gift certificates for $20 each from Groupon and a $40 Market on Yates/Millstream gift card for $20 from SwarmJam, a Groupon competitor. The restaurant deals may make good gifts but I have spent too much on Entertainment Guides that went unused to really consider them.

[Holden West]

On CBC today they were talking about an Okanagan-based outfit that is going to expand into Victoria.

[VicHockeyFan]

I actually don't think it is sustainable. At some point, businesses will figure out that the only people using it are cheapos. They will not turn into repeat customers, they will just use every Groupon, Couvon, Swarmjam deal.

My Groupon rep calls me every single day now, so they must be having problems finding takers. At a minimum of 75% off (after discount and Groupon fee), it's is a bit much for many.

Take Nautical Nellies. They gave away $15,000 of food, and it cost them an extra $7,500 to do it. For $7,500 you could buy a full-page ad in the TC, reach 77,000 readers, and if you wanted to, make it a big 50% off coupon. That'd be the same price.

[Holden West]

We bought the Nautical Nellies coupon. We've never been there--we usually go to Ferris' or the Oyster Bar. So this deal could make us regulars. Knowing we're saving money we might spend more on appetizers and alcohol.

[pontcanna]

At some point, businesses will figure out that the only people using it are cheapos

And loving it, to quote Maxwell Smart.

[sebberry]

I guess it could go either way. Someone uses a coupon once and becomes a regular customer as a result of their half-price experience, or people only go when they can find a coupon to the place.

[spanky123]

So I spoke to the Victoria Groupon rep today. Well, she is in Chicago, but she takes care if Victoria.

For restaurants, they take 50% of the sales. So if your deal is $30 worth of stuff for $15, you get $7.50. 80% of the coupons are redeemed, fully 20% never get used.

So....

1000 sales x $7.50.

800 redeemed, so you give out $24,000 at full retail and yo get $7500 for your troubles.

Groupon pays the business by cheque, 1/3 the day after the deal closes, then 1/3 at 30 days out, then another 1/3 at 60 days out. This way they can make sure they are not hearing back from clients that report having trouble redeeming their coupons, and allows them to make 100% returns to anyone not satisfied.

Groupon has 43,000 Victoria email addys.

The 20% breakage that Groupon quotes is for gift certificates and gift cards. I don't think that Groupon has been operating long enough to have good stats on their own usage. I doubt that 20% is accurate though since the coupons are emailed (less likely to be lost), the time periods are shorter, and people tend to use Groupon for themselves rather than as gifts.

Groupon is leaving lots of room for competitors like swarmjam to come in and offer much better deals to quality businesses.

[Holden West]

^Well, if this other company (can't remember--starts with "Thr--") gets similar deals I would rather support a BC outfit than one based in Chicago.

[sbarnard]

I am sort of sad I missed the Nautical Nellies coupon...I used to go with my Dad all the time.

A disclaimer, I work for a local groupon competitor and we are based in Vancouver and we are soon looking to expand in Victoria...or return back to Victoria as over 1/2 our team is from there.

If you guys want to pre-register for the newsletter, you can check it out here:
http://ethicalDeal.com/victoria

Yeah, that was a definite shameless plug

[VicHockeyFan]

SwarmJam (TC/Postmedia version of Groupon) has 288 buyers so far today for $15 at Nando's for a minimum of 50% off (it goes higher if more buy).

Swarmjam.

That might be their biggest buy yet.

And... I bought it, as I have never been there before but always thought I should.

[VicHockeyFan]

SwarmJam (TC/Postmedia version of Groupon) has 288 buyers so far today for $15 at Nando's for a minimum of 50% off (it goes higher if more buy).

Swarmjam.

That might be their biggest buy yet.

And... I bought it, as I have never been there before but always thought I should.

EDIT: 304 sold now.

So, Nando's has given away $2700 worth of free stuff, at perhaps at the cost of another $1350 in cash (cut taken by SwarmJam).

They get $1350 in revenue and give away $4050 in cash and merchandise. I think this is a bad advertising deal.

[pontcanna]

And... I bought it, as I have never been there before but always thought I should.

Guess that makes you one of the "cheapos" you were excoriating the other day, hastening the demise of a local restaurant, etc.

[VicHockeyFan]

Guess that makes you one of the "cheapos" you were excoriating the other day, hastening the demise of a local restaurant, etc.

I believe it does. But I am not just like those that rant about Walmart and their Chinese labour and products, low domestic wages and local job-killing practices, then buy there.

I said it was a bad deal for businesses, then bought from SwarmJam, with the full knowledge that businesses that did business with them were being foolish.

[spanky123]

EDIT: 304 sold now.

So, Nando's has given away $2700 worth of free stuff, at perhaps at the cost of another $1350 in cash (cut taken by SwarmJam).

They get $1350 in revenue and give away $4050 in cash and merchandise. I think this is a bad advertising deal.

Better deal for restaurants as the hope is clearly that you will spend in excess of the coupon amount and the business will at least break even on the deal and you will come back again.

Service providers are a stranger bunch for me. They wind up giving away their services for $.25 on the dollar when they only have so many hours in the day to sell.

[VicHockeyFan]

Ethical Deals is up and running.

Check this Tofino deal. 300 sold, all to be used by the beginning of May. Now that might be a good deal for them.

[RPPB]

This deal is currently through SwarmJam and is available until midnight tomorrow - "50% Off a $20 Voucher towards Any Menu Item at the Bard & Banker Pub". You are allowed to purchase up to 10 for yourself.

[VicHockeyFan]

Groupon just raised $950M, after rejecting a $6B takeover offer from Google.

Crazy.

[sebberry]

I'm having a "Why didn't I think of that" moment...