Groupon: It's a love/hate relationship.
My boss is a crazy person. We are a generally high volume waxing salon. We do a lot of business. But then there are THOSE months...we slow down, we don't make as much money, the phones aren't ringing, and my boss gets the idea in her head that we need to do something to bring the clients in. Guess what she does?
GROUPON.
Look. I get it. Deals bring people in. A person who has never heard of us will see the Groupon, buy it, come in for a service, and we have a new client for life! Yes! That's exactly what happens every time!
Wrong.
If you haven't promoted your business through Groupon, lemme break it down for you: We put a deal on Groupon for $10 off a service. Client buys. Groupon gets half. Business gets other half. I get commission off of that half. In the end, I don't make much. Also, people don't always use their Groupons immediately after purchasing. They hold on to that deal until right before it expires. Then I'm assuming Groupon sends out a reminder email or something, like, "Hey, use that thing, it expires in two weeks." So then we get this influx of discounted services. I swear I did like 7 Groupons the other day. I thought about jumping off a bridge. My paycheck is taking a huge hit.
I texted my boss with what I thought was a great suggestion! "Hey boss lady, why don't you start giving us 50% of those Groupons so instead of quietly wishing bad things upon those clients, we love them just a little bit more than everyone else?" Her response? "Well I hardly make anything off of them, so...no."
So basically, instead of shelling out a few hundred/thousand/however much money for actual ADVERTISING, my boss has her employees, in a way, paying for her advertising, if you really think about it. We've sold over 800 Groupons. Yes, that's wonderful in theory. However, let's list the reasons why it sucks:
1. Many Groupon clients do not tip. Or they do not tip on the pre-discounted price.
2. Some people are what I like to call "Groupon Surfers." They use Groupon for EVERYTHING. They have one for every spa in town, and we're just the one they chose to use this month. We'll never see them again.
3. Some folks come in with a chip on their shoulder, expecting a less than stellar service because they are using a coupon. They are extra picky, rude, and have this sense of entitlement that is just ridiculous. I love making these people love me. It brings me joy. Like, "HAH! I win. Tip me."
4. Existing clients don't read the find print that says FIRST TIME CLIENTS ONLY. They buy the Groupon, even though our prices are already low, and then they whine when they can't use it, like it's our fault they don't know how to read.
5. I get paid about the same for a Groupon Brazilian wax as I do for a regular priced eyebrow wax, but I'm still taking the same time and care as a regular priced Brazilian. Shoot me.
Sometimes, you get a new, wonderful, great tipping, loyal client who comes to see you and only you, religiously. Sometimes. But that is not always the case.
One day, I will write a book on how not to do business. How not to treat your employees and clients. One day, I will be a successful business owner, and I will look back on this and laugh. But right now...I hate Groupon and if it were a person, I would pop it in the nose.
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Replies to This Discussion
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Permalink Reply by Zenaida Fiducioso on
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It's okay, you're learning from this! I run a little waxing studio and we handle Groupon customers as any other customer - we want them to stay so we treat them well! We want their business! Your face and your name is attached to the service you're giving the Groupon customers, and it's YOU who they'll remember when it comes to the name of the company you're under. Honestly - my business retains many Grouponers, so I'm grateful for companies like Groupon! When a Groupon customer comes to YOU for the service, it's YOU who represents the company. More likely, the customer will request YOU to do the service again if you did a stellar job. I love your quip for #3, I feel the same way - difficult customers are a challenge and when they leave happy - you WIN! #4, definitely not your fault - handle the attitude and move on. You're the professional, you're making the impression, and because of this particular situation... you're going to handle your own business amazingly in the future. You've run into a problem and you're facing it head-on. Perhaps you can suggest to your boss lady that she offer a special discount for the second visit, and then a membership? Groupon customers are like most other people who have a budget, and many of them see things like a waxing as a luxury so it's tough to convince someone like that to commit. That's why this demographic would do well with a membership where they can save a lot in the long-run. If your boss isn't open to that suggestion (or any other suggestion), then lots of luck to her.
Honestly, waxing businesses in certain parts of the country will go through this kind of flux because it's a seasonal type of treatment for most people. The way that it's marketed by the company either can advertise waxing to be part of a lifestyle or just another service in a sea of waxing parlors and other beauty businesses.
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Permalink Reply by Teresa Escoffery on
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Wow, where to begin
You start of by saying your boss is a crazy person, but then you say "HAH! I win. Tip me." I think many a mental health expert would get rich off someone who equates tips (money) to love, and sees someone in service industry who views their work as "winning" vs. "losing" There is definitely a chip on someone's shoulder in this equation and it is pretty clear to me on whose shoulder it lies
" Many Groupon clients do not tip. Or they do not tip on the pre-discounted price." Maybe the clients pick up on your disdain for them -- ever consider that? Ever consider that not everyone can afford to tip? Tips are not a right.
"then they whine when they can't use it, like it's our fault they don't know how to read. "
Trust me, you have a lot to learn before you even think about writing a book about anything, though it sounds like you can plumb the depths of your own mind and attitude when filling the chapters of how NOT to run a business, not NOT to treat your clients, since you already have a great deal of disdain for them
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Difficult clients can be seen as a challenge to win over, you're trying to convince them that your service is worth the time and money. I can see where she thinks, "I win!" This is definitely a learning experience - but yes, tips don't necessarily equate to praise or satisfaction.
Attitude IS everything.
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Permalink Reply by Smashley Shmenneshmy on
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I have a great attitude. I'm grateful for all of my clients. I realize tips are not a right. I don't treat my groupon clients any differently than a regular. I want them to come back. But I'm sure you've never had a bad day and wanted to talk about it to people who understand where you're coming from, Teresa. Next time I know where not to go to vent my frustrations. Thanks for your feedback!
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As a business owner with an employee, I see how abusive it is in Smashley's situation. In my case, Groupon was a good move. Business is booming and we retain many of the Groupon customers. If you know how to handle it, then that's the result you get. We still have customers who pay full price or many who buy into packages, and they leave happy!
Do we have bad days? Sure, but it's always over with quickly. You can vent Smashley, I hope for every bad day you get twenty or more good ones!
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Thank you, Zenaida.
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I agree, the only one making money on groupon is groupon. Rarely do you end up with a good client. Tips can never be expected. You should do great work without expecting to be tipped.
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I'm looking at all the negative responses to Groupon - I guess I'm the only one who's done well with it! If anyone wants to know the formula, message me.
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Permalink Reply by Linda Rabah on
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I used Groupon to introduce my start up business, especially it's hidden inside a building. Groupon hoppers are many but you can tell. I always said "retaining only 20% of the Groupon lovers back to you is a great deal. It is a free advertisement. Advertisements cost more than that!
My experience with Groupon was successful. They treated me professionally. I used the ad until I thought it's enough :)
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That's it, I totally agree about it Linda. If you've got the mindset that you're going to market and shoot for retention then it's a winner. Otherwise... you're going to fail with this strategy every time.
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