230 replies to this topic

[Bob Fugger]

Because the only incremental value that $5,000 in TC advertising brings is the ability to use it to line a bird cage. With the TC, I'm also forking over $5,000 up front for an intangible, unmeasurable benefit. With Groupon, I never give over $5,000 of my hard earned money - I absorb it in my food and booze cost over the redemption period. I'm essentially paying for targeted advertising with contra. Fat chance the TC accepting contra.

So now not only do we have a tangible representation of the reach of the Groupon paid for in kind, that same $5k in Groupons brings incremental spending. We found that the average bill for a table redeeming a Groupon is $45. So that table is worth $30 to us ($5 back from Groupon plus $30 in incremental spending). Arguably, in months like February and March, those are bums in seats that may not otherwise be there.

In addition, for those coming by without a Groupon and see it packed on a Monday night in February, it creates a buzz. Suddenly, it's the place to be, they tell their friends, etc.

And then, of course, there is the (surprisingly high) percentage that aren't redeemed. That's just free dosh. I was skeptical when our GM brought us the idea, but it definitely works for The Fernwood Inn. That said, I can see how it might not work for others.

[Bob Fugger]

Thing is, from what I recall of my friends experience, you dont even really get the cash up front. I think they had a 3 6 and 9 month holdback? or perhaps it was a 0 3 and 6.

They've changed the holdback so that most of the money is paid within a week, from what I understand.

And I don't want to be rude or belittle any independent business owners around here, but if Groupon was such a good deal for an established business, why don't any major chains use it?

I'm almost sure some businesses are talked into it before they think it out long term. I mean, nobody normally would discount by 75%. Somehow with Groupon, they're willing to.

No offense taken - I'm too busy making money to be offended. As for major chains not using it, I'd hardly use that as kind of barometer of legitimacy. Fact is, we spend next to nothing on advertising, besides some strategic ads in local magazines and Groupon. The same can't be said about the major chains.

[spanky123]

Thanks Bob as usual for your honest and practical insight. really helps the rest of us make decisions on services such as these.

Unredeemed coupons are a double edged sword. On the one hand they work well for the business as it is free money, on the other hand if people aren't redeeming their groupons ou would think that at some point they stop buying them.

[VicHockeyFan]

Funny enough, my friends that own the Chop Shop are running it today...

Today's GROUPON is from Downtown Victoria's Chop Shop Hair Victoria. Good deals! Awesome shop.

✰ $15 for men's haircut (a $30 value)
✰ $27 for a women's haircut (a $55 value)
✰ $65 for a women's haircut with all-over colour (up to a $140 value)

http://www.groupon.c...1f01e9016bb8e69

So I'll report back with their experience.

[VicHockeyFan]

Funny enough, my friends that own the Chop Shop are running it today...



http://www.groupon.c...1f01e9016bb8e69

So I'll report back with their experience.

They sold 270 or so. 28 redeemed in the first week. They are quite happy so far.

GeeCeez.com is now up and running in Victoria. They are local.

[VicHockeyFan]

Today's Groupon is.. wait for it....

WHARFSIDE!

http://www.groupon.c...rille?c=all&p=0

In a Nutshell

New ownership oversees menu that includes steaks & locally caught salmon & lobster amid panoramic views of Inner Harbour

Over 40 sold.

[gumgum]

Gotta love that local west coast lobster.

[Holden West]

^That's the first Groupon blurb I've read where the normally yuk-yuk writers restrained themselves. I guess the straight Wharfside tragi-comedy story as we know it cannot be improved upon.

[VicHockeyFan]

^That's the first Groupon blurb I've read where the normally yuk-yuk writers restrained themselves. I guess the straight Wharfside tragi-comedy story as we know it cannot be improved upon.

Which reminds me, writers for Groupon are millionaires apparently:

Patti's first client this week is brand new to being a millionaire. Daniel Kibblesmith, a 27-year-old comedy writer for the popular website Groupon, is a self-professed nerd who doesn't yet understand the social etiquette of dating, nor does he possess the polish of a millionaire

http://www.bravotv.c...he-prince-and-i

[VicHockeyFan]

So Geeceez works for the businesses a little different in that any business can sign up, run their program any length and terms they want, all kinds of deals are going on at once.

http://www.geeceez.c...works/business/

They pay you as you redeem/validate them, and unused ones they cash out for you at the expiry date.

[VicHockeyFan]

Groupon has a deal today for the upcoming (May 16th) Stars on Ice show at Save On.

Interesting. Might be a good way to unload tickets when you have many left, and if you have irate customers that paid more, you might be able to blame it on Groupon.

Not many sold so far though, and it's for limited seating and you have to go to the box office on show days and redeem for tickets.

[VicHockeyFan]

If anyone wants a coffee or similar for $1 including tax - any size, any drink on the menu, including specialty coffees, teas, frappes, smoothies etc.

I've got a Facebook Offer running on my FB page from Moka House on Hillside.

HERE

We think it's the first wide-scale use of the new OFFER feature from FB, in Victoria. 1377 claims so far, and it runs until Sunday. Claims means it has been sent by email to the recipient's email address, so they can take a printed coupon in, or show the email to counter staff to get the deal. I'm not sure where actual redemptions are at, it was at 50 or so at the end end of the first day (Monday).

What's interesting to note (at least to geeks that follow this type of thing) is that although my page only has just shy of 13,000 fans, the offer has been seen by over 62,000 unique people, as its viral nature wings it around to more people every time it is claimed.

[LJ]

^So now I have to take the e-mail I received to I heart Downtown Victoria office and show it to the office staff to redeem?

It seems to give contradictory instructions.

[VicHockeyFan]

^So now I have to take the e-mail I received to I heart Downtown Victoria office and show it to the office staff to redeem?

It seems to give contradictory instructions.

You just take it to Moka House. You'll see Moka House and I ❤ Downtown Victoria have the same address, 103-1633 Hillside.

Facebook won't let us change the name of the redemption joint, and Moka House Hillside does not have a strong enough page to be allowed to do offers, we had to run it off my page.

But when you actually see the e-mail it's a lot more clear than what you just read when you claim it on FB, you get all the fine print and better instructions in the email. There was not a way around it.

[VicHockeyFan]

Today's Groupon might be the strangest one I've ever seen.

http://www.urbangoos...c_victoria.html

From 1 p.m. to 4 p.m. on Sunday, August 5, and Saturday, August 18, teams of competitors take to Victoria's streets for the annual Urban Goose Chase. The chase is a technological twist on the classic scavenger hunt: using the Urban Goose application for an iPhone or Android mobile device, the scavenger-hunt organizers beam out a series of challenges set in locations around the city. Smartphones become compasses, pointing the way as teams pick their challenges. Events include anything from knitting a useful item out of plastic grocery bags to reenacting the classic fountain-splashing scene from the title sequence of Friends. For each task completed, the organizers award teams a certain number of points. The team that earns the most points overall wins a $500 Visa gift card and the designation of microcelebrity.

Competitors should make sure to bring their mobile devices and clad themselves in orange—the competition’s signature colour—to gain some bonus points.

Urban Goose Chase

The day of the citywide scavenger hunt, 200–300 teams of up to five people hit the streets, clad in Urban Goose Chase’s signature orange. The event organizers communicate hints and challenges via smartphone. Tasks vary widely, sometimes requiring creativity, sometimes a willingness to get messy, and sometimes the courage to eat whatever the race’s chefs cook up. In the end, one team reigns supreme, taking home a prize and making lots of smug faces. The hunt kicks off in cities all over North America, from New York to San Francisco and Chicago to Saskatoon.

[Nparker]

I have had some other groupon experiences that were better than you described. My favourite was a flight simulator experience in a 737. The guy was straight up and said that he only does groupon on Saturdays. For us coming from Victoria, Saturday was perfect...

I think these sorts of limitations should be explicitly pointed out at the time of a Groupon purchase. If repeat business is the purpose of using Groupon, then the company should give exemplary rather than second-rate service to encourage people to come back and spread good word-of-mouth.

[VicHockeyFan]

Today's Groupun is 50% off at Spank-It Sports, not bad, it's rare to see a pure merch deal on Groupon.

[Mike K.]

I'm hearing from a lot of merchants that they no longer entertain Groupons of any sort. The consensus is return business just doesn't materialize.

[VicHockeyFan]

Groupon may have jumped the shark today:

In a Nutshell

Astronomy buffs can name and dedicate a star with any message they'd like and receive charts and software to help find the pet gas ball

$14, discounted from $29.90

[Mike K.]

So soon, hey? To think there was once an offer of $6B for that company...