If you’re afraid to use Groupon to promote your business because of some rumors you’ve heard, it’s time to open your mind to some new ideas. Inc. has brought together some small business owners that want to help you understand how it can help, not hurt, your business, and help dispel the stigma that seems to come with the service.
Watch the Price Point
Heather Speizman, co-owner of Bottles ‘n Brushes, an art studio in Mount Pleasant, South Carolina, was looking to spread the word about the new location in Summerville, so she sought out Groupon. But before she settled on the deal, she researched similar businesses and comparable markets to see what worked. Her company settled on a $15 Groupon for a class worth $35. Speizman advises small businesses is to ask lots of questions before settling on an agreement with Groupon, and don’t be afraid to haggle for the best profit margin for your business. Groupon always takes 50 percent of each coupon it sells.
Limit the Deal
Potomac River Running operates eight stores in and around Washington, D.C. But its first Groupon was only valid at four of its stores, to which the company wanted to drive traffic, co-owner Brendan Shapiro says.
It also limited the offer (a $25 Groupon for $50 in the store) to running shoes and apparel, excluding accessories and special promotions. Robinson says the store knew it shouldn’t expect a revenue boost from Groupon alone.
“The conclusion that we came to right away was that it’s a useful tool when it comes to trying to acquire new customers, but we didn’t want our existing loyal customers running in using Groupons,” he says.
Screenshot from Groupon