Most of us subscribe to numerous discounted daily deal sites promoting local restaurants, spas and retailers. Groupon and Livingsocial are a few of the hundreds of different companies who offer this popular service. Before signing your business up for an offer, we've compiled a few points to ponder. While many businesses discover this is an excellent way to draw crowds, others aren't quite so lucky.
1. Consider your price point. A large percentage of each payment will be taken by the company marketing your deal. Be sure to also check on the credit card fees associated with each transaction. More often than not, the marketing company will pass this expense onto you.
2. Be creative about pushing for repeat business. Perhaps, offer a discount on a second visit. The main goal is to attract a new client base... and keep them coming back for more.
3. Don't take away from a current client base. The goal is to attract new clients and because of this, new businesses happen to be the most successful with this model.
Resource: Moran, Gwen. "Is Groupon a good deal?". Entrepreneur, March 2011: 61.
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