Rick Henkin Karl Kasca
of the Week-How Groupons can Energize your Business (online and offline)
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Tip of the Week- How Groupons can Energize your Business (online and offline)
I figure that if I encounter something twice in two days then it's
probably a trend, or about to be one.
Sunday I walked to The Huntington Library in San
Marino (near Pasadena in Southern California) and there was a table
set-up in front for "Groupons".
When I asked about this I
was informed that if I signed up before midnight that night I could
receive an annual membership to The Huntington for $60,
instead of the usual cost of $120. Hey I'm no math major but that's
almost 50% off! (actually I was
a math major and it's exactly 1/2 the cost).
That's a great
deal, no matter how you slice it. The bad part is that this was a
deal-of-the-day and it expired last Sunday night (sorry!).
Then I was listening to Bob Knorpp's The Beancast podcast for 8/8/2010 on
my walk yesterday and they were also talking about Groupons. Bingo! -
maybe a trend is emerging.
The Beancast said: "Anything that moves traffic in retail these days is
a good thing. And group coupon services like Groupon have been the
darling of the Internet."
So what's a "Groupon" and how does it work? Basically Groupons are
group discounts. Groupon calls this "collective buying power".
A Groupon is group coupon which only works if a minimum number of
people "buy" the deal that day by midnight. If not enough people
sign-up it's canceled. If enough people do sign-up then you print your
Groupon and use it like cash for the particular deal it applies to. You
can see more about how this works in Groupon's FAQ.
Once you're aware of Groupons you'll probably notice them on web pages
all over the internet.
And this is great, but The Beancast pointed out a few of things you
should keep in mind in you're considering using Groupons for your
- It's great that there's a minimum, so your business is assured of at
least a certain number of people partaking of a particular
offer. But on the other hand, what if the whole world showed up? Would
you or your staff be able to handle the increased amount of traffic?
- One person on the podcast said it's possible that a business might
have to turn into a virtual call center the day of the deal.
So again, would your business be staffed for this?
Would your business be able to provide the number of items or
services promised in the deal? If not, then this might result in
bad customer service ratings or relations for your business.
Is the Groupon-type business model sustainable? In other words, just
because you increased your internet and real business traffic for one
day, or one deal, would this translate into increased customers or
These are all great questions and you should check out The Beancast
podcast for the full discussion. But in a nutshell, you should be aware
of the possible pluses and minuses of Groupons before your business
Have you used Groupons as a consumer or a business? Did you
have good or bad experiences? If so, let us know...
And since we were talking about libraries at the top of this tip, you
may also be interested in our recent tip on "Why Links to eBooks can help your Online
Marketing" and how to find no-fee eBooks you can read on your
iPad, Kindle, iPhone, Blackberry, Smart phone, etc.
Karl will be speaking on:
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reason that Karl and I've put together this website is to help you
more money. We know the things that you need to know, but we also
to hear about the topics that are of special importance to you.
me with your topic ideas at:
Rick Henkin and Karl Kasca
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