My conversation with Groupon

**mrmac** · 12-01-2011, 03:08 PM

A sales rep from Groupon called me today to try to get me to advertise with them. They dictate the offer WE are to give.
The offer was to be... 50.00 paid for 200.00 in product... and/or 99.00 paid for 300.00 in product and Groupon keeps 50% of each "Groupon " sold
In other words I get paid .
25.00 for 200.00 in eyeglasses or contact lenses
49.50 for 300.00 in glasses or contacts.

I told the rep that I would likely LOSE money on each transaction, she replied "No ...you make it up in volume..
I asked her if she had ANY math skills at all

**PhillyEyes** · 12-01-2011, 04:14 PM

That is why we always refuse Groupon and similar discounting merchants. Although...

My buddy in the city did a groupon deal one week. $100 for $200 worth of services at his optical shop. So yes he was geting $50 for $200 of services. Most patients got an exam and used the remaining balance towards the discount on frames and lenses. Every frame he sells there is super-high end.

He sold 500 groupons, and the two weeks after the groupon closed he said were the 2 highest grossing weeks in his opticals history. I wont get specific, but including the immense discount, they did really really well. Plus he thinks he may have many return customers now...

**cocoisland58** · 12-01-2011, 08:14 PM

Mostly they come in wanting to spend as close to the groupon value as possible.

**MakeOptics** · 12-01-2011, 11:54 PM

Originally Posted by cocoisland58

Mostly they come in wanting to spend as close to the groupon value as possible.

Actually not so, most the time they end up with a few add ons. Most the groupon clients don't consider the initial money spent in the grand scheme of things. Groupon has definitely gotten exploitative in their model but about a year to a year and a half ago they were great. Unfortunately now every optical has heard of it and it's time to move along to the next thing. Heck even the chains are using groupon now.

**Chris Ryser** · 12-02-2011, 05:06 AM

Originally Posted by PhiTrace

Heck even the chains are using groupon now.

.................................wondering which on-line optical will be the first to jump in ?

**LENNY** · 12-02-2011, 09:49 AM

Originally Posted by Chris Ryser

.................................wondering which on-line optical will be the first to jump in ?

It did!

**coupe** · 12-02-2011, 11:59 AM

What would stop a small town opto from running his own Grupon type coupon. EXAMPLE: An add placed in his local newspaper offerring a $50.00 coupon for $150.00 of product..... Then he has a voucher printed up and the coupon buyers make a Paypal purchase for the coupon. He emails them the coupon. He would offer only a slect number of coupon, lets say 50 - 75 coupons. He dose not have to split the $50.00 with anyone and possibly drives more clients to his office.

**internetmonkey15** · 12-03-2011, 12:30 PM

Originally Posted by coupe

What would stop a small town opto from running his own Grupon type coupon. EXAMPLE: An add placed in his local newspaper offerring a $50.00 coupon for $150.00 of product..... Then he has a voucher printed up and the coupon buyers make a Paypal purchase for the coupon. He emails them the coupon. He would offer only a slect number of coupon, lets say 50 - 75 coupons. He dose not have to split the $50.00 with anyone and possibly drives more clients to his office.

Local newspaper....

**MakeOptics** · 12-03-2011, 01:33 PM

Originally Posted by coupe

What would stop a small town opto from running his own Grupon type coupon. EXAMPLE: An add placed in his local newspaper offerring a $50.00 coupon for $150.00 of product..... Then he has a voucher printed up and the coupon buyers make a Paypal purchase for the coupon. He emails them the coupon. He would offer only a slect number of coupon, lets say 50 - 75 coupons. He dose not have to split the $50.00 with anyone and possibly drives more clients to his office.

Try the local news station or radio station their rates are often a lot better. You could opt to go the traditional route and pay for advertising as well.

**trifoil** · 12-04-2011, 08:13 AM

how does Groupon find out about Groupon sales? my memory is not so good, it is possible I could forget to send Groupon their money

**internetmonkey15** · 12-04-2011, 09:26 AM

Originally Posted by trifoil

how does Groupon find out about Groupon sales? my memory is not so good, it is possible I could forget to send Groupon their money

um groupon takes their share and then sends you the remainder by check according to how many coupons sell on their website.

**jmchapman** · 12-07-2011, 02:25 PM

Don't hate on groupon. If it gets patients in your door, how is that bad?

**PhillyEyes** · 12-07-2011, 06:57 PM

Originally Posted by jmchapman

Don't hate on groupon. If it gets patients in your door, how is that bad?

One theory an OD explained to me why groupon sucked....

An individual that purchases a groupon for highly discounted eyewear will come through the door yes, for instance get $300 worth of services for $100 (which really is $50, after groupons cut) and walk out with a smile. This individual has no customer loyalty to you, even if your customer service, selection, exam, staff, and all attributes of your office were top notch and perfectly suited this individuals needs.

When the times comes for a new pair of glasses, this indivdual will find the next place that has a groupon available, why would they spend over $300 at your place for the same thing they got last year for $100? They will be "groupon-ing" customers for life, just going to places that offer these discounts, for the thrill of saving so much money and bragging rights to their friends...

By offering such deals in an eyewear boutique the individual has a better understanding of the profit margin of the eyewear we sell also, they all understand how groupon works, they know that they just walked out of your office paying hardly anything for something that would of cost them over $300 if groupon did not exist. AND groupon took 50%... AND you made a profit!!!

None of this is my personal opinion, this is the opinion of an OD that works here. I happen to view it a bit differently. Just an answer on how groupon may be "bad"

**Johns** · 12-07-2011, 08:23 PM

When I see a business participating w/Groupon, my first thought is that business must REALLY be bad.

Groupon = Desperate

Why else would you give away your services and your products unless business was REALLY bad.
How many consumers want to patronize businesses that are REALLY doing poorly?
Not me.

**bob_f_aboc** · 12-07-2011, 08:27 PM

Originally Posted by PhillyEyes

One theory why vision insurance sucked....

An individual that purchases vision insurance for highly discounted eyewear will come through the door yes, for instance get $300 worth of services for $100 (which really is $50, after vision insurance's cut) and walk out with a smile. This individual has no customer loyalty to you, even if your customer service, selection, exam, staff, and all attributes of your office were top notch and perfectly suited this individuals needs.

When the times comes for a new pair of glasses, this indivdual will find the next place that has vision insurance available, why would they spend over $300 at your place for the same thing they got last year for $100? They will be "vision insurance" customers for life, just going to places that offer these discounts, for the thrill of saving so much money and bragging rights to their friends...

By offering such deals in an eyewear boutique the individual has a better understanding of the profit margin of the eyewear we sell also, they all understand how vision insurance works, they know that they just walked out of your office paying hardly anything for something that would of cost them over $300 if vision insurance did not exist. AND vision insurance took 50%... AND you made a profit!!!

. Just an answer on how vision insurance may be "bad"

Please note the subtle changes above in red. I don't see a whole lot of difference except groupon runs for a day or two and vision insurance is a lifetime hassle.