Issue link: http://cp.revolio.com/i/142672
offering a daily deal By Irene Diamond Our wellness center was the first in San Francisco to offer a massage Groupon deal. That was in June 2009. "Wow," we thought, "that was cool—fast, easy money, with no out-of-pocket expense to us!" Cool indeed, until the phone started ringing off the hook and we couldn't figure out Groupon's system of how to track the buyers who were frothing at the mouth to come in as soon as possible. In two days, Groupon sold 272 certificates for hour-long massages at our center for $39 each. We received a revenue share of 60 percent (negotiated up from their original offer of 50 percent), less a small credit card processing fee, which gave us our nice little windfall. But boy, did I learn a lot from that experience. Our Experience Since we were one of the first businesses to work with Groupon in San Francisco, very few consumers understood that first promotion. The customers were calling us directly to purchase the deal, not understanding they needed to go through Groupon's website. We were given no instructions on how to track the purchased certificates; we were simply emailed a 16-page list of names of the buyers. Even Groupon's staff was unclear about the entire system. We quickly learned our $39 offer price was way too low. Because the discounted price was more than 50 percent off our usual rates, it attracted a large number of clients who were not in a financial position to afford our standard rates, even if they sincerely wanted to come back to see us. We did, however, manage to get about 30 percent of the Groupon purchasers to become repeat clients, and many referred their family and friends to us. I suggest keeping your deal price closer to your standard rates, even if you sell fewer certificates, rather than attempting to sell a higher number of certificates at a greater discount. We also learned how important it is to include details, such as appointment availability, in the fine print of the deal. We had many people who were disappointed they could not get an appointment as soon as they wanted. Should You Do a Daily Deal? This question is a big one among therapists and can be very controversial. Many therapists and other small businesses feel it is a great way to stimulate business by getting some income and new clients. Other therapists feel it creates a "coupon culture" in which consumers will never again want to pay full price and clients are only looking for the next cheap massage. I believe a deal can be beneficial for most businesses, but it absolutely needs to be structured appropriately and in keeping with your brand.