Online local coupon business idea?

by ncloud
18 replies
I just wanted to share a business idea that I thought up one day. I'm curious to see what other people think about this idea. I'm not sure if it's a good idea or not.

I can see that there are other people already doing this, but that shouldn't be a problem because it's a local business idea and there are so many towns/cities in which you could do this.

My idea is simple. You have a coupon website. Lets say you live in Columbus Ohio as an example. You can get a domain like www.ColumbusOhioCoupons.com or whatever. Then you can setup your website, however you would do that.

But, the basic idea is that you would approach the local businesses to see if they would like you to create a coupon or coupons for them on your website. People could then come to your website and print up the coupons that appeal to them. And while they're there, they can also subscribe to your list to receive a weekly email that keeps them up to date on local deals/coupons.

On one site I was on, it looked like they even had a text coupon option that allowed people to bring the coupon up on their cell phones and I guess redeem them that way. I'm not exactly sure how that worked.

You make money by charging the businesses for the service. The coupons stay on your website for a set period of time before you either take them off or charge them again.

A lot of businesses are already paying for advertisements in different places, maybe even for coupons to be printed up. But, with a coupon website like this, I would think you could save them money since there no printing costs at all.

When you first start such a website, you might have to lower your prices considerably. Or you could just tell the businesses that the first time is free since you're still need to spread the word about your coupon website. Not to many people will be interested paying you for the service if nobody knows about your site yet.

But, you can grow awareness of your coupon site with flyers. You can put one on the bulletin board at grocery stores or wherever. Advertise it in the newspaper, etc.

Once the word is spread and your website becomes more popular, then you can raise your prices to what you originally intended them to be, as long as it's still worth it to the businesses (less than what it cost them to have coupons printed). That way everybody wins.

And once you've become the go to website for coupons in your town, you can branch out and do the same thing in surrounding towns.

So what do guys think? Is there any reason why this is not a good idea? It seems like it would be a very easy business to run once you get the website built. The hard part I would think, would be getting the website built. What do you think?
#business #coupon #idea #local #online
  • Profile picture of the author Jeff Lenney
    Wrong place for this post, please try the local marketing forum!
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  • Profile picture of the author ncloud
    Where do you see a local marketing forum?

    Somebody must have thought this was a good spot for it because I didn't post it here. I posted in the Main forum which I thought seemed like the best spot for it since it is about making money on the internet - coupons on a website.
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  • Profile picture of the author jamesfreddyc
    How is your idea different from Groupon?


    It seems like it would be a very easy business to run once you get the website built. The hard part I would think, would be getting the website built. What do you think?
    I don't know any idea, business or sales process that is "easy". In most cases the difference between a business idea you think is "easy" and an idea successfully brought to the market is that the later comes with an enormous amount of consistent hard work over some period of time.
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  • Profile picture of the author ncloud
    How is your idea different from Groupon?
    I was thinking something similar to that. Don't know why I'd have to be too different, I just have to cover a different location right?

    It doesn't sound like hard work to me going around talking to business and trying to get their business. If it saves them money I don't know why they wouldn't want to try it. And if it works well, they will probably keep coming back on their own.
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    • Profile picture of the author gjabiz
      Go spend ONE morning calling on businesses currently using coupons, see how many still think it is a good idea. You'll be surprised.

      Coupons aren't going away, but many businesses are tired of using them, and a loyalty card might be a better option.

      Why follow a business (Groupon) which is probably going under this year?

      gjabiz



      Originally Posted by ncloud View Post

      I was thinking something similar to that. Don't know why I'd have to be too different, I just have to cover a different location right?

      It doesn't sound like hard work to me going around talking to business and trying to get their business. If it saves them money I don't know why they wouldn't want to try it. And if it works well, they will probably keep coming back on their own.
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      • Profile picture of the author jamesfreddyc
        Originally Posted by gjabiz View Post

        Go spend ONE morning calling on businesses currently using coupons, see how many still think it is a good idea. You'll be surprised.
        I don't remember who said it or where I read this but it's along the same lines of this. Basically, they presented the notion that any business idea or action plan concocted, it should just be immediately taken to the marketplace without any additional planning. I mean just start calling up your target market and get to selling/presenting it.

        You'll find out how receptive that idea might be relatively quickly.

        The time/energy/cost put into that short effort will be well worth the cost in the long run of a failed idea.
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  • Profile picture of the author ncloud
    You might be right, coupons might be becoming less popular. I didn't think about loyalty cards.
    Why follow a business (Groupon) which is probably going under this year?
    Really, I didn't know that. Maybe that business idea isn't a good one after all.
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    • Profile picture of the author DABK
      The problem, from what I understand on how Groupon and such sites function, is they do not teach the business owner how to hold on to some of that extra traffic. And many, perhaps most that use Groupon and such, need such learning.

      You have a bakery. You sell cake slices at $4. You offer a $1 discount, so now you sold at $3. Groupon wants half. So, you made $1.50 from the sale.

      You thought, when they come in, they'll buy other stuff and some will come back.

      And, true enough, some did. But you sold 100 coupons and only 11 bought extras, and not that much, and only 4 came back.

      You did not know you're supposed to have some other offer to get them to come back or, at least, have them sign up to your email list or go to your facebook page.
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      • Profile picture of the author Ron Lafuddy
        Originally Posted by DABK View Post

        The problem, from what I understand on how Groupon and such sites function, is they do not teach the business owner how to hold on to some of that extra traffic. And many, perhaps most that use Groupon and such, need such learning.

        You have a bakery. You sell cake slices at $4. You offer a $1 discount, so now you sold at $3. Groupon wants half. So, you made $1.50 from the sale.

        You thought, when they come in, they'll buy other stuff and some will come back.

        And, true enough, some did. But you sold 100 coupons and only 11 bought extras, and not that much, and only 4 came back.

        You did not know you're supposed to have some other offer to get them to come back or, at least, have them sign up to your email list or go to your facebook page.
        The sad part about this is, the customers will continue to buy bakery products.

        They'll just buy them somewhere else. And the bakery owner will never understand why.
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        • Profile picture of the author jamesfreddyc
          Originally Posted by Ron Lafuddy View Post

          The sad part about this is, the customers will continue to buy bakery products.

          They'll just buy them somewhere else. And the bakery owner will never understand why.
          When I'm calling up businesses I'm amazed at how often someone picks up and says, "Hello?".

          Really?

          Are you like working in your garage or are you an actual business doing xyz for customers? Forcing me to ask, "this is xyz company, correct?"

          It's insane how often that occurs and I'm immediately put off when I'm expecting a cordial greeting with at minimum the business name in there somewhere.

          It's no wonder why so many just fade away or go out of business.
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          • Profile picture of the author DABK
            Hello? You get 'hellos?' You're doing good, boss. I called and got, Yeah? and What? The what was in an angry tone.

            True, they were rare. I get a lot of hello or hi. And get confused, like you.

            The interesting thing, with some of them, it turned out it was not staff but the owner or the CEO who messed up.

            Now, if the owner or CEO can't figure out to say, Business name, How can I help you? or something else like that, what else are they messing up?

            Originally Posted by jamesfreddyc View Post

            When I'm calling up businesses I'm amazed at how often someone picks up and says, "Hello?".

            Really?

            Are you like working in your garage or are you an actual business doing xyz for customers? Forcing me to ask, "this is xyz company, correct?"

            It's insane how often that occurs and I'm immediately put off when I'm expecting a cordial greeting with at minimum the business name in there somewhere.

            It's no wonder why so many just fade away or go out of business.
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            • Profile picture of the author jamesfreddyc
              Originally Posted by DABK View Post

              Hello? You get 'hellos?' You're doing good, boss. I called and got, Yeah? and What? The what was in an angry tone.

              True, they were rare. I get a lot of hello or hi. And get confused, like you.

              The interesting thing, with some of them, it turned out it was not staff but the owner or the CEO who messed up.

              Now, if the owner or CEO can't figure out to say, Business name, How can I help you? or something else like that, what else are they messing up?
              heh. It's incredible to me.

              I might do some experimenting next week with framing my position at the start of the calls to really be aggressive.

              John: "Yes?" <not even a "John here, how can I help you">

              Me: "John, are you all working from your home garage?"

              John: "What!? NO! WHO THE HECK ARE YOU?"

              Me: "Well to be perfectly honest, this is probably what your customers are thinking when your staff answers the phone that way."


              LOL! Probably would get lots of hang-ups I'm sure but it'd be interesting to see how an aggressive positioning right at the start of a call would work.
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          • Profile picture of the author gjabiz
            To each his own. I'm ecstatic when a real live person answers the phone.

            I would think that most here, being salesman and all, would turn that into an advantage...make it FUN and set the tone, the mood.
            But, be annoyed if you must.

            gjabiz


            Originally Posted by jamesfreddyc View Post

            When I'm calling up businesses I'm amazed at how often someone picks up and says, "Hello?".

            Really?

            Are you like working in your garage or are you an actual business doing xyz for customers? Forcing me to ask, "this is xyz company, correct?"

            It's insane how often that occurs and I'm immediately put off when I'm expecting a cordial greeting with at minimum the business name in there somewhere.

            It's no wonder why so many just fade away or go out of business.
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            • Profile picture of the author jamesfreddyc
              Originally Posted by gjabiz View Post

              I would think that most here, being salesman and all, would turn that into an advantage...make it FUN and set the tone, the mood.
              But, be annoyed if you must.

              gjabiz
              I was thinking from the customer perspective.
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          • Profile picture of the author bizgrower
            Originally Posted by jamesfreddyc View Post

            When I'm calling up businesses I'm amazed at how often someone picks up and says, "Hello?".

            Really?

            Are you like working in your garage or are you an actual business doing xyz for customers? Forcing me to ask, "this is xyz company, correct?"

            It's insane how often that occurs and I'm immediately put off when I'm expecting a cordial greeting with at minimum the business name in there somewhere.

            It's no wonder why so many just fade away or go out of business.
            Have them pretend to be a customer and see if want to do business with their company.
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      • Profile picture of the author gjabiz
        They get a new customer and do nothing to keep her.

        Example: I tried a new restaurant for a late lunch yesterday, place was empty, the service slow but the food great. I decided I would go back but next time use a little Glenn Osborn NLP (lottery tickets) on the wait staff for better service.

        However, if they would have made an effort, done anything, I might have given my email to get a deal later. Since it is sort of out of my way, I probably won't go back as often as maybe I would have.

        Which is why I think customer loyalty is a better way for many small businesses to go. I know several local biz's which won't do Groupon again, and some of them did have a new customer capture page, for them, Groupon attracts the one off bargain shopper who chases after FREE or cheap.

        Birthday "coupons" are booming, why not help a business set up a birthday program?

        gjabiz


        Originally Posted by DABK View Post

        The problem, from what I understand on how Groupon and such sites function, is they do not teach the business owner how to hold on to some of that extra traffic. And many, perhaps most that use Groupon and such, need such learning.

        You have a bakery. You sell cake slices at $4. You offer a $1 discount, so now you sold at $3. Groupon wants half. So, you made $1.50 from the sale.

        You thought, when they come in, they'll buy other stuff and some will come back.

        And, true enough, some did. But you sold 100 coupons and only 11 bought extras, and not that much, and only 4 came back.

        You did not know you're supposed to have some other offer to get them to come back or, at least, have them sign up to your email list or go to your facebook page.
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  • Profile picture of the author TrafficFlow
    I really think you'll find that most business owners prefer to post their coupon deals with big companies like Val Pak so unless you happen to have developed a Ton of traffic on your site that you can show the business owner they are not likely to be interested (unless you happen to live in a very small town). But I like your idea on the domain name. So why not set up a site that has links to existing online local coupons and monetize it with AdSense
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  • Profile picture of the author NewParadigm
    groupon went wrong by not really caring about the business(customer). groupon hogged 50% to drive traffic. A business doesn't need traffic. It needs profitable traffic. And I laugh at how dumb most businesses are when structuring a groupon deal. They gave everything away. And groupon didn't guide them and help them. Dumb business owners never negotiated w/ groupon to get the 50% down which they did often. Secondly, as I mentioned they structured their deals all wrong.

    My friend owns a medspa for facials, laser hair removal and botox. She was sour on groupon 50% off deals and she netted 25% of reg price. A loser.

    I asked her why she was discounting the whole enchilada??? We negotiated groupon down to 25-30% and then did the 50% off of the first X units of botox. When an average person would use MORE than X units for an average treatment.

    Boom, drove nearly the same traffic, instantly profitable from first visit, customers happy they got their 50% off (make sure upfront disclosure is clear so they dont feel any bait/switch or upsell) and customers were a bonus if they bought other stuff or came back.

    I was going to launch a buyers agent service helping businesses negotiate w/ groupon/livingsocial etc...to save biz money, structure deals profitably, and incidentally save groupon in the process and make a little myself. before the implosion.

    bulls make money, bears make money, pigs get slaughtered.
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