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

Permalink Reply by Zenaida Fiducioso on October 20, 2015 at 1:22pm
Truth!
Permalink Reply by Teresa Escoffery on October 24, 2015 at 3:06pm

I've never given Groupon more than 20% of the revenue of any deal we have offered.  Some are as little as $25 on a $150 sale

Every other deal site that contacts me, this is the first thing I bring up and 80% of them are out of the running after that.

Permalink Reply by Liza on October 25, 2015 at 4:14pm

This is good to know. Now I have some ammo for the next time they come calling!

Permalink Reply by Nancy Squier on October 17, 2015 at 12:03pm

Thank you for the insightful post!

Permalink Reply by Janet Lynn Klein on October 20, 2015 at 1:12pm

I have to AGREE.. Groupon IS a LOVE-HATE Relationship!

I basically started my business as the same time Groupon was NEW- meaning there was only 1 business " Featured". ONE not 70-80 like it is today!

Groupon is Great for bringing new business, BUT today society is programmed to only look at discounted services!

I have the same problem with Groupon/Living Social "Groupies" . And yes some of them are cheap and rude!

I've always made it a policy to offer a returning customer a  great- not-so deep discount to come back for services.

It's an EVIL necessity unfortunately!

It's a matter of how you handle it and how you aim to retain that client!

Good Luck!

Permalink Reply by Smashley Shmenneshmy on October 29, 2015 at 5:45pm

I love seeing all this feedback! I'm glad we could start this conversation, and it makes me feel so much better knowing I'm not the only one who sometimes feels kinda crummy about it. I wish I could negotiate with Groupon, but it's not my business. We've all gotten to the point at work where we've just learned to accept it, and then we cross our fingers that the client leaves us a nice review on Groupon. Nothing makes me feel better than seeing a positive review where they actually remembered my name. Word of mouth is another huge ego boost. When my clients come back and say, "I've told ALL my friends that they need to come see you!" it just makes my whole day. My job is very repetitive and can be extremely exhausting, but it makes me feel good that my clients are coming back and asking for me. I went on vacation a few weeks ago and came back on a Tuesday with 20 clients on the books for that day...except it was raining so we had a bunch of cancellations and no shows. But I digress..as far as Groupon goes, I have accepted my fate. People are gonna buy them. Everybody wants a good deal. I just have to work extra hard to make sure I see that client again next month, and be thankful that I'm staying busy and making people happy. I sure am ready for another vacation though. 

Permalink Reply by Zenaida Fiducioso on October 29, 2015 at 5:50pm
It's much more than that. You're gaining much needed experience and building a reputation, that's very important in the springtime of your career. We all started somewhere, so it's good that you're seeing this as opportunity to grow.
Permalink Reply by Victoria Prinzo on October 29, 2015 at 8:07pm

That is a great attitude !

Just some last advice: go easy on your boss always.  No doubt there are greedy people who dont care about their employees, but for the most part is always hard as a business owner to crunch numbers and pay bills while keeping employees happy and motivated all the time.  

At the beginning is always hard...

If you were a solo esti you would have to do a lot of discounted or complimentary treatments in order to get your name out there, or else have an empty room all day while relying on traditional advertisement -which in my opinion does not work anymore this day and age. People just do not read magazines or newspapers the way they used to.

Or like in your case, work for somone else (who at the end of the day has to bear the weight of the business in every aspect) and have to go along with whatever promo or discount they come up with to attract new customers.  And being an employee also does not guarantee that you will have clients right away.  Either way, hard work and a little sacrifice is what it takes...

Know that Groupon and discounted services are not your "fate", one day you will have enough loyal clients who will pay your worth. 

Permalink Reply by Smashley Shmenneshmy on October 29, 2015 at 9:13pm
I get where you're coming from, but my boss is all about money and some of the decisions she makes hurt my brain. Also, I haven't seen her in about six months so... Meh.

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