Sensible Erection | One Business's Groupon Experience

Friday, 10 June 2011

An interview with Posie's Cafe owner about her experience with Groupon. Interesting insight into how a Groupon promotion works.

There are five parts to the video interview and yes the audio sucks but it is what it is.

Followup (I guess) to this post http://sensibleerection.com/entry.php/83517

[by Jaxon@11:20pmGMT] [+10 Interesting]

Comments

Chop-Logik said @ 11:22pm GMT on 10th Jun
http://sensibleerection.com/entry.php/83517

Also, if you put the businesses name in the post, it can be searchable.

Jaxon said @ 11:27pm GMT on 10th Jun
Well the interview is barely a few days old and I got more out of that then her post.

I don't have a replacement handy so feel free to down-vote to make it go away.

Dioxin said @ 11:30pm GMT on 10th Jun [Score:1 Insightful]
tl;dr

f00m@nB@r said @ 11:36pm GMT on 10th Jun

bertoavi said @ 7:43am GMT on 11th Jun
why is this not a post of it's own?

aliron said @ 7:52am GMT on 11th Jun [Score:1 Underrated]
Hunter S Thompson and his lawyer?

Chop-Logik said @ 11:34pm GMT on 10th Jun
Yep, your post brings something new to it. I was just posting the precedent post if you wanted to reference it. I'm not downmodding, but I'll check it out proper later.

f00m@nB@r said @ 11:38pm GMT on 10th Jun
The guy posts his critique of a Groupon contract, too:

http://blog.agrawals.org/2011/06/07/an-analysis-of-the-groupon-merchant-agreement/

f00m@nB@r said @ 11:39pm GMT on 10th Jun [Score:5 Funny]

Dioxin said @ 12:14am GMT on 11th Jun [Score:2 Funny]
lollerskates

gunthar said @ 7:19am GMT on 11th Jun
anyone gauchos here?

gunthar said @ 7:22am GMT on 11th Jun
any gauchos here? anyone a gaucho here? anyone want to help me drink away my problems?

but srsly del playa drive has now made it a double entendre to me and it's not always sexual for some bizarre reason

lilmookieesquire said @ 10:15am GMT on 11th Jun
UCSB! I used to live on Sabado Tarde. Next to campus. 3 blocked from where that guy ran over all those kids.

gunthar said @ 8:34pm GMT on 11th Jun
that guy fucked everything up, i graduated in '09 and they're still trying to crack down on everything as a result of his stuff.

i lived on trigo, dp and el colegio at various times. dp was just too much.

crom said @ 5:50am GMT on 12th Jun
I lived on Sabado Tarde, half a block east of where that happened. Took me about 3 months of walking by it every day before I figured out why there were all those candles on the sidewalk.

G. W. Bush said @ 11:57pm GMT on 10th Jun
CBC's The Current did a story on groupon:
http://www.cbc.ca/thecurrent/episode/2011/06/06/coupon-deal-websites/

yevishere said @ 1:03am GMT on 11th Jun
Umm, if you want to do business with groupon or any other company for thousands of dollars then get an attorney/accountant to read the contract and talk to other people who have done business with that company. If you don't, then its sad but you will often loose a lot of money.

bruceski said @ 1:52am GMT on 11th Jun [Score:2 Informative]

Bob Denver said @ 1:44am GMT on 11th Jun
I've wondered what stops people from going to a Groupon'd business, saying, "Hi, I know that you have a Groupon thing going so how about you offer me the same deal but you keep all the money?"

blitzcat said @ 4:14am GMT on 11th Jun
Um, my employer does exactly that. I think you meant the end customer, but the phrasing fits.
Our sales staff ask local businesses to allow us to print and distribute the same as their groupon offer, on their behalf. We do it free for them as long as its a cool deal like a buy-one-get-one free. Our end customer (usually grade school parents) buy the coupons through school PTA fundraisers, and thats where we get a share.
Most of our restaurant partners don't hate us the morning after.

I print 90 million coupons per year, but the company is a fairly small player in coupons.

Bob Denver said @ 5:53pm GMT on 11th Jun
I did mean the end customer. Groupon's business makes no sense to me since it can be circumvented with no penalty.

foobar said @ 7:40pm GMT on 11th Jun
Why bother?

blacksun said @ 2:24am GMT on 11th Jun
Yeah, seems pretty lame how many business are not seeing much if any positive effects of Groupon, while in the mean time, Groupon's IPO is at 44 billion.

Billion.

I think word is going to get out that it doesn't really help business' and the whole thing will fold.

maryyugo said @ 2:25am GMT on 11th Jun
I think there's some merit for some businesses but I have to agree the evaluation in billions is preposterous and will likely crash.

blitzcat said @ 4:15am GMT on 11th Jun [Score:1 Insightful]
They should have taken the google money and run. Biggest business mistake of 2011.

YHVH said @ 10:46am GMT on 11th Jun [Score:1 Funny]
/death stare

maryyugo said @ 2:24am GMT on 11th Jun
Groupon is good for a membership organization. A local sailing club that would be lucky to get a dozen new members a month "sold" sailing lessons (an ASA basic certification course) through Groupon. They barely broke even on giving the lessons but more than 500 people (according to the Groupon add) responded and of those, many became permanent members (not sure the number). Anyway, they were quite pleased.

Groupon might not be good for some narrow margin retail food businesses. It's much better for service business. They got as big as they are somehow!

mrklipp said @ 4:00am GMT on 11th Jun
:They got as big as they are somehow!

They make deals that are good for their customers, and good for themselves.

It could be like Walmart, more than a few of their suppliers have been driven under trying to keep up with demanded price cuts, then replaced with Chinese suppliers.

blibblob said @ 7:44am GMT on 11th Jun [Score:-1 WTF]
Capitalism at work. Don't knock it.

foobar said @ 2:26am GMT on 11th Jun [Score:5 Underrated]
Rule number 1 about dealing with salespeople:

They are not on your side.

Rule number 2 about dealing with salespeople:

They do not give you advice in your best interests.

Rule number 3 about dealing with salespeople:

They lie.

todde said @ 4:59am GMT on 11th Jun
Or as my father told me when I was four or five "All ads are lies"

Advertiser said @ 4:08pm GMT on 11th Jun
That is not true! We just want to get the truth out to the customer.

MEEJA HOR said @ 6:19am GMT on 11th Jun
1. True.
2. Not so true in my case.
3. Everybody lies about something.

foobar said @ 6:40am GMT on 11th Jun [Score:1 Insightful]
2. I've found salespeople will often lie even to themselves about what they're doing. If you were giving advice in your customers and against your companies interests, you wouldn't be employed very long.

3. Not everyone is employed for the specific purpose of lying about the topic at hand.

strangeffect said @ 10:19am GMT on 11th Jun
Ah, the old "buyers are liars"

Tang said @ 2:40am GMT on 11th Jun
we just had a groupon deal a couple of months ago where i work
we have some cheap ass customers
some are really nice so i don't mind, but usually coupons bring out the worst in people
spend $10 for $25 worth of stuff (meh for a groupon)
except for the 3 regulars who bought them we haven't seen a single one return
but i don't care if the company looses money cause i hate my douche for a boss

just sucks cause it's more work for us

Naruki said @ 3:02am GMT on 11th Jun
You should care. If they loose their money it might escape and then you won't get paid.

Tang said @ 6:06am GMT on 11th Jun [Score:1 Funny]
nah it's a co-owned business
the real owner is a lawyer but the other gets to run everything (guy who runs everything is a doucher)
lawyer is super rich and uses business and coupons for tax write-offs
i will say the people i work with are nice. besides the second co-owner.

CapnSilver said @ 12:58pm GMT on 11th Jun
Are you the douchee?

rndmnmbr said @ 3:06am GMT on 11th Jun [Score:3]
That's the problem with Groupon. None of those customers are converting to regular customers. They're just hunting deals.

atter_cob said @ 3:16am GMT on 11th Jun [Score:1 Insightful]
From her original interview:

"Then we talked the percentage split. John told me that when the consumer pays less than $10, Groupon usually takes 100% of the money."

That's like me complaining that I got ripped off at a car dealership and then saying "I asked about the price and he said most people just pay the sticker price."

The woman did something dumb by not really reading and thinking about the deal she was making. Sure, maybe the groupon person might have taken advantage of her a bit, but that's how business often works.

Also, this is pretty much a repost... but I guess the interview is new.

kichijoii said @ 6:03am GMT on 11th Jun
"Her Groupon rep told her that she could only do one Groupon in the life of the business."

Oldest trick in the sales book. She really is new to business, huh?

Ifrit said @ 6:05am GMT on 11th Jun
I have only stayed with one place after I used my groupon. This is only because it was a hair stylist and he did a really good job cutting my hair. I don't need a hair cut as often and I have ended up spending less for my haircut since. Plus, they shop gave me a lifetime 25% discount on everything so I feel that it was worth it.

I also use boot camp groupons but I'm not loyal to any gyms. They are all expensive.

gunthar said @ 7:26am GMT on 11th Jun

i wanted a place to put this song/video

Dioxin said @ 5:00pm GMT on 11th Jun
Damn hipster midgets

bertoavi said @ 7:26am GMT on 11th Jun [Score:3 Informative]
The other side:
I had been thinking to do groupon until i saw the first post of this, the more I read the more it made sense to actually do it.
We are a small restaurant that just opened , Japanese with sushi, and even tough the food is very good and affordable we are still struggling to bring them in (location).
I e-mailed them but got no response, so I went with the local "Daily Deal" which is similar, but smaller. I tought would have a smaller database thus preventing from being overloaded. Deal was 15 for 30, 60/40 split (Us/them). One day run, sold 400. Worked great. So far we serviced half, no problems at all, two asked to use two at once, which was a no/no in the "rules" that we made. I accepted, as to please them. No other prob so far. customers are leaving happy, or at least satisfied. I know most won't be back, but at this stage they are filling in the setas and creating a better atmosphere for my other patrons, that where worrying if we would make it. at three weeks they gave me a nice juicy check, minus cc fees, no biggie. I'm looking forward to do it again with living social and groupon. The first post helped me negotiate and think of the rules to ask for. True story.

bertoavi said @ 7:31am GMT on 11th Jun [Score:2 Interesting]
yes, a few are very cheap with tip, but so far all have tipped. Some only tip on the "rest" but others have been generous. i would say that most try to stay at range, but we have also had many go over by double. I know some will be back as our food is good. they provide us with a e-mail list that would serve to offer them direct deals (all profit for us).
I had two people buy directly from Us.

bertoavi said @ 7:34am GMT on 11th Jun
I also tried one of those 'coupons" in mail (package, with a bunch of others) basically buy one get one free.
Old Media. one full month at 400 bucks= 3 coupons...

bertoavi said @ 7:41am GMT on 11th Jun
The best thing so far has been the exposure, we where basically only "local" neighborhood until then. This brought people from all over the county.

zenviper said @ 4:12pm GMT on 11th Jun
Awesome - where is this restaurant located? General area is fine, just curious if I can visit.

bertoavi said @ 5:07pm GMT on 11th Jun
"Rocking Tanuki" in Sunny Diego...

maryyugo said @ 5:17pm GMT on 11th Jun
Somewhat checkered reviews but I suppose that's yelp.com for ya.

bertoavi said @ 7:16pm GMT on 11th Jun
yep, the reviews on yelp are skewered. I let go ( not fired) an employee (girl) who was very OCD, and she is a big yelper, with friends to match. If you look closely, alll negative reviews have been been tagged "useful, funny and cool" which is a yelper way to add to other reviewers.
The amount of reviews do not equate to a normal trend, even if they would be negative. In my former restaurant we had one or two reviews every TWO months!. Here, it s"spiked" as soon as I let her go.
The worst review came from her best friend.

A lot of true reviews are removed if you are not a regular yelper, so going to yelp and "loving" the place doesn't not work, and yelpers learn quickly that good reviews are not read at all, everyone loves a dramatic story.

With sushi, we also get the double standard of not being "authentic" if you are not asian: mind you, I have worked with Koreans who hated japan, and chinese guys that would not eat sushi, but since I'm mexican I get the "OH, Not Authentic!.
My partner (girlfriend) is Japanese, I have One Japanese sushi chef, and three employees who are full Japanese, but since I'm not, we get the"label".

bertoavi said @ 7:26pm GMT on 11th Jun
11 out of 14 reviews that have been "filtered" by yelp are 4 and 5 stars. Only one of them is my own.

foobar said @ 8:46pm GMT on 11th Jun
That seems so silly to me, especially since sushi is now as much a west coast thing as it is Japanese. I grew up with it and it's one of my top comfort foods.

zenviper said @ 5:29pm GMT on 11th Jun
Thanks for sharing - I will be sure to stop by when I am in the area. (I am up in LA)

bertoavi said @ 7:19pm GMT on 11th Jun [Score:1 Classy Pr0n]
Thanks! I'm usually tending the sushi bar, be sure to mention SE and I will take good care of you!

maryyugo said @ 6:15am GMT on 13th Jun
I have a friend who frequents the Nijiya Market on Convoy. I'll see if I can get him to drop by. I dunno tho-- he's pretty stuck on their sashimi.

buzhidao said @ 1:41pm GMT on 11th Jun
i think going with the local 'daily deal' was a good decision, better than using something big like groupon. smaller database is a good thing, and also you are doing business with a local company and keeping dollars in the local economy. other local companies will want you to do well. groupon seems to throw a wide net, and i dont feel like they really care about the small businesses they get involved it.

eIfish said @ 4:24pm GMT on 11th Jun
OTOH, who's going to travel great distances for sushi?

foobar said @ 8:38pm GMT on 11th Jun
They don't. The companies are the product, not the customer. That doesn't mean you can't have a mutually beneficial relationship with them, but you definitely won't if you just go with the flow.

midden said @ 10:39pm GMT on 11th Jun [Score:2]
My wife did a Groupon for her store a few months ago. She knew it was not a profit making deal, but an advertising promotion. She gave up half the sale price of the groupon, essentially all the profit for each groupon, minus any additional money spent by the customer. She was clearly informed about how the whole system works, and chose to set a limit on the number/value of groupons sold/distributed. It helped get the word out about her small specialty store around the region, and probably brought her a couple dozen or more new customers without actually costing anything.

It's a perfectly good promotional system, as long as you understand how it works, and what you're getting into. Maybe some of the Groupon sales people are less than clear about the cost/benefit/risks involved, but my wife was very pleased with the whole deal.