Groupon

E

Eastcoastdetail

New member
If my cost of doing business per hour is 20 dollars an hour, what type of package for groupon is feasible? Maybe a quick mini detail for 80$? Doesn't groupon take half or something like that? What are your past experience with groupon?
 
Local Lexus dealer did their $400 full detail for $189. (It sounded like the $189 detail the Lincoln dealer does.)Another fixed location detailer did a wash/clay/hand wax/light interior for 160.00 and groupon of $80. Don't know how much of a deal it was for the buyer because they usually advertise an express hand wax for $45.00.



I guess it depends how you package your services.



Good Luck!
 
2 weeks ago a local shop offered a Groupon deal of 2 "Mini Details" (wash, dry, and vac) for $49. It was basically a 2 for 1 deal but advertised as 51% off. He sold over 250 deals over the two days it ran. I like this type of deal better because you can slot in a quick wash and vac job between larger jobs and fill in holes in your schedule. Appointments were required and the coupon was good for one year.
 
Base your pricing on the volume of response. Determine what your normal marketing avenues generate in new customers per week/month. ("X") If you estimate groupon will generate "2X" over the same period of time, you can decide how much you want to charge as a "discount" for the groupon. It should yield a fairly similar margin for the same period of time, if its calculated properly.
 
We did a Groupon about six months ago. We had a package that was pretty basic, Wash, clay if needed, Full Vacuum, Engine cleaning, Machine applied Wax. windows, tires, rims. it took two of us about an hour to an hour and a half. It was Priced at $49 on Groupon. We made out very well, gained a tom of new customers and repeats.
 
different service offer, similar price point, and those are my intentions on doing groupon in the next couple of months hopefully. Just waiting on a friend to get my new website up and running so I can go in and edit the text!!!!
 
MirandaDetailin said:
We did a Groupon about six months ago. We had a package that was pretty basic, Wash, clay if needed, Full Vacuum, Engine cleaning, Machine applied Wax. windows, tires, rims. it took two of us about an hour to an hour and a half. It was Priced at $49 on Groupon. We made out very well, gained a tom of new customers and repeats.
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Not sure if you are allowed to answer this but what percentage of the $49 does Groupon keep?
 
Groupon tried to get me to do one with them and it just did not make sense for me. If I was a quick/fast/cheap kinda deal I could see it working very well.
 
JC, for the type of paint correction work, its definitely not worth it...but for the quick wash and wax type of jobs, its worth it if you have an extra set of hands...



The way I figure it, at a discounted rate, Ill still be able to make $40/hr+ because I wont be the one doing the work, Ill have someone else there with me...its a far cry from 70-80/hr, but at the same time, the volume will make up for it!
 
My wash prices are still on the costly side at half price and how long me or my guy spends on a wash is time consuming. How I saw it was folks would use me for the groupon then never use me again at $55 for an exterior wash.





toyotaguy said:
JC, for the type of paint correction work, its definitely not worth it...but for the quick wash and wax type of jobs, its worth it if you have an extra set of hands...



The way I figure it, at a discounted rate, Ill still be able to make $40/hr+ because I wont be the one doing the work, Ill have someone else there with me...its a far cry from 70-80/hr, but at the same time, the volume will make up for it!
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yeah, see....I am going to offer it for my $100 spray wax and interior protection package - takes 1.5 hours to do total for me on a sedan. Its not under the Envious Detailing business though, its under the new one coming up soon....as soon as my friend gets my site up!



I have to get an email into Groupon to find out the way to get my business on there, but I heard they make you sell for 1/2 off or more, and then they take their 50% cut from that! so in the end, you sell and profit 25%. So unless you are aiming for VOLUME, Groupon is not for you!
 
A few thoughts to keep in mind: Groupon and Living Social require you to discount your product or service at least 50%. Yes, you will probably get lots of new customers, but consider what types of customers they will be. Someone who will only buy detailing services at 50%, probably is not in the typical target market for high end detailing services. This probably means the cars will be older and dirtier than average. It also means they are less likely to be repeat customers at your regular prices because of the above mentioned fact. Also, make sure you are prepared for the influx of business and cars that are in worse condition. I have heard lots of stories about how businesses can not accommodate the people who bought the deal. IMO, there are better ways to attract the right type of customer who is willing to pay your regular price.
 
That's exactly how I felt. But Eric has the right idea if he is going for volume type work (-screw perfection and charging these for it). He may also be able to up sell them on shampoo or something else to bump the profit.



brwill2005 said:
A few thoughts to keep in mind: Groupon and Living Social require you to discount your product or service at least 50%. Yes, you will probably get lots of new customers, but consider what types of customers they will be. Someone who will only buy detailing services at 50%, probably is not in the typical target market for high end detailing services. This probably means the cars will be older and dirtier than average. It also means they are less likely to be repeat customers at your regular prices because of the above mentioned fact. Also, make sure you are prepared for the influx of business and cars that are in worse condition. I have heard lots of stories about how businesses can not accommodate the people who bought the deal. IMO, there are better ways to attract the right type of customer who is willing to pay your regular price.
Click to expand...
 
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