To Groupon or not? It’s a question I get asked a lot. Here are some questions you’ll need to answer to know whether it’s a good marketing strategy for your business:
1) What are your cost of goods? Under a “typical” deal, you’re only going to net 25 cents on the dollar. So if you have a product/service that has a high cost of goods, you “could” offer it as a loss-leader, but I suggest you create a package of products/services that will provide you higher margins.
2) Can you offer upsells and/or cross sells? This is a key strategy to making daily deal marketing work for you. Sure, you can “get ‘em in the door” with the deal, but the way you make money is to then have upsells and/or cross sells that they just can’t resist.
3) Are there times when you’re slow and/or can handle additional capacity? When you structure your deal correctly, YOU control the process – how many deals you’ll sell and when/where/how it’s valid. So if your restaurant is busy Friday & Saturday then exclude those days.
There are other questions that your business will need to answer to determine whether daily deal marketing is a good strategy or not for your business. You can take the quiz and find out.
About Stacey Riska
Stacey Riska, aka "Small Business Stacey" is a serial entrepreneur who is passionate about helping small and local business owners get MORE: MORE leads, MORE customers/clients, MORE sales, and MORE money. She transformed her coffee and smoothie business from being $500K in debt to a 7-figure profitable business by using daily deal marketing. Now she teaches others how to skyrocket their business growth and get massive profits. When not saving the small business world, she enjoys sipping red wine, eating chocolate (who doesn't!) and spending time with her amazing husband.