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View Full Version : Living Social or Groupon


hawthornelawncare
08-06-2012, 08:05 PM
Hi there have any of you run a deal on living social or groupon or any other company that lets you run deals for services? If you have what has been your experience from it..

SECTLANDSCAPING
08-06-2012, 09:55 PM
I was contacted by living social. They want you to discount your service by 50% then they get a 50% cut. So youll be working for 1/4 of your rate. I passed!

From the reading I did, service companies have went out of business doing these promos or damaged there reputations. You end up having 100 people wanting the work done now and when you dont they trash you.

This really only works for high mark up products.

LawnBoy0311
08-07-2012, 04:11 AM
I agree with the above post. It sounds great for someone who maybe has no overhead, or trying to get your name out there. But for making some real cash, you'll be running around like a mad man for little money. I know for a fact you'll get a lot of hits from doing it. I worked in an industry that had a ton of people who used groupon. They used to complain about how little profit it was, and these were all restaurants. Theres also an LCO where I live who did it. They got trashed talked by reviewers online because they couldn't honor the deal.

On the other hand, is there a way to do it and offer free trimming/edging with a cut? This way you could mark your price up a bit to cover some of the difference.

DudleysLawnCare
08-07-2012, 08:21 AM
You got to lose some money to gain some money (contracts). So although you might be working for nothing you'll be gaining as well.

LawnBoy0311
08-07-2012, 08:53 AM
You got to lose some money to gain some money (contracts). So although you might be working for nothing you'll be gaining as well.

To an extent, your right. The people who use Groupon or Living Social are looking for deals. They aren't looking for a yearly contract, they are just looking to get a cut for as cheap as possible. This is most likely the type of customer who will sign, then cancel a month later. IMHO they are all CHEAP!

LawnBoy0311
08-07-2012, 08:55 AM
This may help a little...

http://www.yelp.com/biz/eastern-grounds-maintenance-bowie

Hedgemaster
08-07-2012, 09:28 AM
THere was a thread on here last year about a lawn care operator who used Groupon and got screwed over royally. I think it was a "demand" issue where he had too much work at too low a price. Not good.

SECTLANDSCAPING
08-07-2012, 11:01 AM
To an extent, your right. The people who use Groupon or Living Social are looking for deals. They aren't looking for a yearly contract, they are just looking to get a cut for as cheap as possible. This is most likely the type of customer who will sign, then cancel a month later. IMHO they are all CHEAP!

This is exactly what it is. A lot of companies thought that it would bring in new business. What happen was the coupon cutters bought the single sale product and that was it. They also dont follow rules and will buy more then one coupon.

You can only do it with something with high markup. Lawn mowing is out of the question. The way it works if your product cost $1 to make and your retail is $30 you can afford to sell it for $7.50. If you offer a $60 service for $15. You might as well stay at home.

The representative will tell you what you can do to. You cant just say we want to do lawn mowing. They will decide themselves. Then if you put a crazy *** price on it they wont approve it.

These people will spam you. I had dozens of phone calls and emails. While I researched it. I was going to do it in a slow month. After looking the number over I can do the same promotion without them and get customers.

But dont take my word for it. Read the reviews. Living social use to be 30% which helped a little but now there both at %50.

Steve
08-07-2012, 12:32 PM
Haven't we seen a lot of companies that were ruined and put out of business because they used such sites and they ended up suing the coupon companies?

hawthornelawncare
08-07-2012, 07:50 PM
Well i know living social has changed some. i just ran a deal for just mow line trim and blow for 37.00. out of that they will take 47%. So out of that i will get 19.61. I figured id give it a try and see if i can gain some customers after they use there voucher. I know some of you are gonna leave some neg comments and its okay.

I feel if you can do a good job and win the customer over then youll have there buisness. I have gotten some jobs even with being the higher price. Seems theres still some old fashion people who like honesty and how you carry yourself over being low price and you get what you pay for.

As for the deal i ran that price is after the mark down of 51% savings. Might be ball busting but you dont know inless you give something a shot. And i have it in the stipulations that its only mowing line trimming and blowing debri off. Nothing else.

On another note i look at it as free advertising.

LawnBoy0311
08-08-2012, 04:25 AM
As in blow, I thought he meant "the nose candy". Who wouldn't like to mow, trim, and snort a line before the next job?! Infact, maybe thats how some of the competitors move so fast...

Caskey Lawns & Landscapes
08-08-2012, 07:41 AM
:eek::D:D:D:D:D

LawnBoy0311
09-10-2013, 11:09 AM
Well i know living social has changed some. i just ran a deal for just mow line trim and blow for 37.00. out of that they will take 47%. So out of that i will get 19.61. I figured id give it a try and see if i can gain some customers after they use there voucher. I know some of you are gonna leave some neg comments and its okay.

I feel if you can do a good job and win the customer over then youll have there buisness. I have gotten some jobs even with being the higher price. Seems theres still some old fashion people who like honesty and how you carry yourself over being low price and you get what you pay for.

As for the deal i ran that price is after the mark down of 51% savings. Might be ball busting but you dont know inless you give something a shot. And i have it in the stipulations that its only mowing line trimming and blowing debri off. Nothing else.

On another note i look at it as free advertising.



If your still around, did you end up getting any weekly/biweekly clients out of this deal?

jymie
09-11-2013, 09:29 AM
We tried groupon last year, its true they sell the service to thier list at half of your value for the service, they get half of that and you get the other half 25%. So a service worth $150, you end up with roughly $37.50 for the service. You lose based on that, but they will tell you that by doing this, you will meet potential new future business this way if they are happy with your service. Well I can say that this year, even after marketing to these new people, I received not a single call back for more service. If this idea is something you want to try, market to your current customer list by offering the same deal, cut out the middle guy (groupon) and make yourself 50% instead of 25%. You should be getting everyones email just for that purpose anyway. So you can run promotions from time to time.

LawnBoy0311
09-11-2013, 10:38 AM
I know in my area there is a lot of back lash from using these types of service. Yelp reviews tell it all too- these type of ultra cheap customers tend to get bad reviews.

I never thought about using it and never will use it. I've seen too many people get burned by them. I was just curious if anyone had success with it.

Jymie, would you do it again or what would you do different?

Anyone else gain from it?

dpld
09-11-2013, 12:26 PM
You got to lose some money to gain some money (contracts). So although you might be working for nothing you'll be gaining as well.



the saying is it takes money to make money.

to say you have to lose money to gain money is a absurd comment.

businesses are profit centers not a roll of the dice and if you are not profiting then you are on a path to nowhere.

we live in a society where everyone wants to look like a big player but no one wants to spend the money.

sites that attract cheap azzes like living social, groupon. service magic and even craigslist are all a waste of time and are completely unneeded.

don't let anyone tell you that you need to participate in that crap to build your business because nothing could be further from the truth.

i could care less about other industries and what sites like that do for them because we are landscapers and it is like comparing apples to oranges as well as most normal thought processes for business do not apply to the landscaping industry.

stores sell products that all come from the same place and one store might be able to sell something a couple bucks cheaper because they buy larger quantities and get the product a little cheaper then a smaller store that moves less of a particular product.

now take landscapers, and to be more specific lets compare two similar companies.
they both are small and have one brand new truck.
they both have the same mowers and the same equipment and we all pay give or take a few bucks the same for all of the above.
insurance cost is about the same, payroll taxes are the same and both have the same amount of employees that get paid the same.

one guy charges $40.00 to cut a lawn and the other will cut the same exact lawn for $25.00. why is that?

the guy that cuts for $40.00 is charging the right price and his route is full and he puts his day in and makes a good living as well as has built a business with a desirable customer base.

the other guy that charges $25.00 has to run around like a chicken with his head cut off and do almost double the work to make the same money but as a result has to work longer hours and increase his payroll and also do double the billing and rely on double the amount of people to pay him in a timely manner.

the way it works out in the end is the dude who works less and prices his jobs correctly makes more money and has a better more efficent business then the cut throat dude who is twice as busy.

the morale of the story is cutting your prices and being more busy does not translate into profits and profits are why we go into business in the first place.

sales and gimmicks are good for retail businesses and food businesses but it does not work and is useless in the landscape industry.

i can cut my prices and make my phone ring three times more then it does now but why bother if at the end of the day it is gonna mean less profits and more hours and wear and tear on my business.

jymie
09-11-2013, 12:38 PM
I know in my area there is a lot of back lash from using these types of service. Yelp reviews tell it all too- these type of ultra cheap customers tend to get bad reviews.

I never thought about using it and never will use it. I've seen too many people get burned by them. I was just curious if anyone had success with it.

Jymie, would you do it again or what would you do different?

Anyone else gain from it?

No, I wont use it again, mainly because they make you wait to get all your money, it took them 6 months for me to get what was due me.

LawnBoy0311
09-11-2013, 03:49 PM
No, I wont use it again, mainly because they make you wait to get all your money, it took them 6 months for me to get what was due me.

Get the hell out of here! Are you kidding me???? 6 months?! Was that the terms or did they slack off?

jymie
09-11-2013, 07:09 PM
They pay a small percentage per month