Living Social Visited Our Bakery today. They sent a walk in sales rep.

11 years ago

Here's something I found on Yahoo Finance this AM about the deal sites:

Groupon and Deal Sites See Skepticism Replacing Promise | The Exchange - Yahoo! Finance

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SashaLee

11 years ago

Hi there,

I think if you tackle it the way you should tackle any media, you might be able to make it work for the bakery.

If you or your client listen to the rep or take the rep's advice, you're probably doomed.

Just as you wouldn't/shouldn't listen to the Yellow Pages sales rep, you should look at this as another vehicle to potentially get the baker's name out there.

If they don't want to go with your suggestion for the ad - then don't do it.

Maybe you could think up a cool promotion that could garner some PR out of the deal....like the restaurant did with the world largest hamburger?

Just an idea.

Best,

Sasha.

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KingOfContentMarketing

11 years ago

Unless you have 5 to 10 locations avoid any sales rep suggesting their product/media/website will "get your name out there." Concentrate on advertising that gets results (like your EDDM campaign). Many people are finding out the deal sites are not the way to go.

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jayspann

11 years ago

Yeah I have heard a ton of horror stories from the deal sites. I think it "might" work if you could capture ALL of the people that bought your deal so you could follow up with them.

I did an interview with a girl that works in the PPC dept at Groupon.... I takes them 8.6 months to recoup each dollar they spend in Adwords to acquire an email address.

So if your willing to take a loss on the front end I think it could work.

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startup

11 years ago

Originally Posted by jrod014

Hey Everyone,

Some of you may remember my post about the direct mail postcard campaign for my bakery client. If not you can read the post here http://www.warriorforum.com/offline-...y-results.html

They sent a sales rep to the bakery today pitching the idea to the owner. I wasn't there but I really wish I was there to hear the pitch. It would have been cool to see how they train their sales reps to pitch on a cold walk-in.

Anyway, I get an email forward from my baker client showing me the follow up email the rep sent. Has asked me what my thoughts were and I almost jumped out of my seat and yelled "NO!" lol.

I know the "daily deal" offer could be profitable (mainly service related businesses) but I don't think it's wise for a bakery.

I've read numerous reviews on yelp from groupon/living social deal seekers. A lot of them just complain about the service/product.

I've also read a lot of nightmares from local business owners regarding groupon style offers they've done.

Has anyone here had success with livingsocial? I would love to pick your brain.

Thanks!

Jerry

LS is having problems and is laying off personnel...not sure why...that said,

LS and Groupon has been attracting a lot of deal/freebie seekers..they come once, use the coupon then look for another coupon the next week or another freebie...the business owner may lose money giving away products and fees to the coupon co.

There so many better ways to bring in new business...free publicity, for example ...give some cakes to a local senior center, write a press release and hand deliver it to, your local paper...

Participate in Toys for Tots or a charity event...write a PSA and give it to your local radio station..they will give you air time for free by reading the PSA ( Public Service Announcement) ....I generally see businesses use these deals almost out of desperation

Try the creative approach...I use them all the time to the benefit of my clients
Good Luck and Happy Holidays

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wiredtolive

11 years ago

Originally Posted by startup

LS is having problems and is laying off personnel...not sure why...that said,

LS and Groupon has been attracting a lot of deal/freebie seekers..they come once, use the coupon then look for another coupon the next week or another freebie...the business owner may lose money giving away products and fees to the coupon co.

There so many better ways to bring in new business...free publicity, for example ...give some cakes to a local senior center, write a press release and hand deliver it to, your local paper...

Participate in Toys for Tots or a charity event...write a PSA and give it to your local radio station..they will give you air time for free by reading the PSA ( Public Service Announcement) ....I generally see businesses use these deals almost out of desperation

Try the creative approach...I use them all the time to the benefit of my clients
Good Luck and Happy Holidays

I completely agree!! For a bakery not the way to go.

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SirThomas

11 years ago

Most of local bakeries are "local" :-)

Living Social or Groupon will bring many bargain seekers that will never become customers for your client. I'd rather use EDDM, local newspapers, radio stations and local websites.

Thomas

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Rearden

11 years ago

Groupon and Living Social customers are not your clients.

They are deal-seekers, clinging their sweaty palms to their coupons.

They are "One-Night Stand" customers.

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lloydmc

11 years ago

It can more often then not be a no-go for these sales rep promoting their product and making promises it will deliver for you beyond your wildest dreams and imagination.
Be very aware.

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lloydmc

11 years ago

What i can recommend are sites like groupon or Living social, in which should make local businesses have a more easier time to use the internet to potentially get more business.
Again, be wary of sales rep., they just simply want to market their products.

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Paul Gram

11 years ago

I've got a business owner friend who has done VERY well with both Living Social and Groupon. Without them, his year would have been very bad.

A bakery would be an excellent thing to do on LS or Groupon because of the ability to leverage and generate repeat business.

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lloydmc

11 years ago

I also have a friend who started using Groupon and Living Social to integrate the online world into his business.
Now he just absolute cant get enough of using Facebook at his leverage.

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lloydmc

11 years ago

Whoopse, sorry for the double post, my browser was acting up on me.

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toddbiala

11 years ago

Past owner of daily deal site in a specific city. The promos work if done right and you capture emails or build up a punch card type system. If you don't the people will never come back. And I mean never. They are chasing a deal. And that's it. If that wasn't the case we'd still be in business.

If you do do a promo make sure to negotiate. Just keep asking for more, more more more. They will give it to you as they are desperate in most cities to fill slots. If I were you I would make sure to get 80% of the profits or wouldn't do it.

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toddbiala

11 years ago

also should note only reason we didn't work out is becuase businesses started to realize this and didnt want to run any more promotions. Theyve ran with us, groupon, ls, the local radio sites, newspaper site, etc.

Our list is over 70k in the city and when we put up a promo for a solid restaurant we'd make a killing. Wish it could've sticked or coud've found new way to operate or use the email list.

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ClayWhite 11 years ago

Do you guys know if Groupon or Living Social supplies you with a list of email addresses from he customers that buy your discount?

I'm also wondering how much they take per sale and if there are start up fees.
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- Norbi 11 years ago
  
  Clay - They don't provide email addresses. They take anywhere from 20%(very hard to get unless you are reputable or very high end offer) up to 50%. No start up fees.
  
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rbecklund

11 years ago

A moving company client of mine just did Living Social and it worked well for them. They understood they needed to up their price to make enough money. They felt the extra work in a normally slow period and the exposure were worth it.

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ClayWhite 11 years ago

Thanks Norbi

I would be interested to know how they approach a business and what their sales pitch sounds like. Even more, how do they get the business to cut their price in half and then justify taking HALF of the sale?!

Their website groupon works dot com tells you that they work with you to create a great campaign but they never say "you have to offer 50% or more, oh and we take 50% of your sales."

What I did find interesting is that they pay the merchant in thirds over X amount of time... ummm you're going to take half and then you're going to hold my funds?! :confused:

I can't find anything on how the whole process works. Just slick talk from groupon and anger customer reviews... If anyone knows a good site where it explains the WHOLE process and how the negotiation process works that would be great!
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bobmcalister

11 years ago

would love to get in touch with the rep myself...good sales people who do cold calls are rare.
have suggested to a couple of my clients that use the coupons, to use that as an upsell...my carpet guy killllls it with the upsells from a 99 dollar deal...while he is there he or his sales rep sell everything from cleaning air ducts to gutters...
a bakery would lose money I think .
my carpet guy says that the lead costs him 50 bux and he is good with that.

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Steve Solem

11 years ago

I usually think just about any marketing tactic is worth trying, especially if you've got money to spare...but considering how well you did getting clients for the bakery with your direct mail efforts and knowing how poorly LS and Groupon workout for many businesses, I'd say keep doing what works and forget about LS.

I wonder if they'll comeback with a bigger/better offer for you after you turn them down once or twice?

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OnlineStoreHelp 11 years ago

I have run the numbers and I always give advice to my local clients for these deals.

First, consider running a daily deal on your Facebook page. Lots of third party applications that will allow you to run them, about 30 bucks a month. You build your clientele, email address, twitter followers and Facebook likes to keep marketing to afterwards.

The only time I can consider it worthwhile with the large companies is if the voucher is small, like 7 to 10 dollars.

If they do it, never do a voucher for more then 1/3 of your average ticket, it takes away from the 75% bite to your margin.
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jasonl70

11 years ago

The daily deal offer is the equiv. of a free front end product (lot of freebies here in WF sig's).. but much better, as it's still a 'buyers list'.. but like any loss leader, it requires a well planned/executed follow up (make their experience memorable, and people will come back).

I liken it to when I was heavy into adwords - I could run a campaign that appeared to lose money, but because of my 'system' (ie, a funnel, follow up, etc) I could make a great ROI.

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-Jason

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jasonl70

11 years ago

Jerry - you yourself have this in your sig:

"50% OFF For Warriors"

not to much different than a 50% off groupon when you think about it

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-Jason

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Living Social Visited Our Bakery today. They sent a walk in sales rep.

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