Group Deal Guidelines

Group Deal Guidelines

Are you confused with the current “GROUP DEAL CRAZE” and want to know how to GUARANTEE your business really benefit?

Then check out our “Guidelines for growing your business” through the current group deal bargain craze.

Having investigated numerous complaints and concerns regarding the pressures many businesses are going through with the current group discount craze with Scoopon, Jumponit, Cudo and the like, APAN has conducted a thorough investigation and is putting forward recommendations to help businesses better manage their involvement with these offers. A full report on our investigations will be presented in the next issue of our publication APJ journal. If you are not a member of APAN and would like to receive this and other benefits please complete an application form to ensure you do not miss. There is no better time to stay connected with APAN – Australia’s fastest growing member based network and standards body

Meanwhile here are our recommendations:

Choosing the right company

Not all group deal website are the same so please make sure you investigate the “terms and conditions” carefully to ensure they suit your business before deciding which one you will go with.

Here are some guidelines and questions you need to ask the companies:

( ) Does the company allow you to limit the number of offers? e.g. “only the first 20 who respond will be entitled to this offer.”

( ) Does the company allow you to determine the degree of discount for your offer? Or do they demand that you offer very cheap deals like $39 or $49 for a $300 package?

( ) Does the company allow you to limit the redemption days of these offers? e.g. on your quiet days “redeemable only on Monday, Tuesday or Wednesdays.”

Evaluate your needs

Before you embark on such a program you must first determine what you want to achieve from this and set specific and measurable goals. These most likely will include increasing your client base. However, make sure that the deals you put forward capture the right kind of client and not just the bargain hunter.

Here are some guidelines and questions you need to ask yourself:

( ) How many people can you service? For example if you have three staff and you receive 1200 responses will you be physically able to service these numbers. How will this effect your business and your reputation. Be realistic about what you can manage and set the limit accordingly.

( ) Make sure you evaluate your costs? Do a thorough cost analysis to ensure the exact cost of the treatments you will be offering. Include not only product costs and wages, but also incidentals such as linen, water, electricity, consumables as well as the percentage of income that you will be giving the company for this transaction.

( ) Is your offer honest in terms of value? For example if you offer a treatment valued at $300 for $39 can you honestly use the same quality products you would have used if you were charging $300? If no, then realistically you are misleading the public and can be held liable for this. Also, if a treatment is worth $300 and you can afford to give it away for $39 then is this suggesting that your prices are too high in the first place? What message are you giving the consumer?

( ) How will you measure the response? Set up a program that allows you to measure the conversion ratio of clients who took up these offers and then became regular clients. This will allow you to consider whether the exercise was of real benefit to your salon or clinic and something you would be happy to introduce from time to time. If there are no conversions, then is it really a strategy that will benefit you?

By doing your homework you can ensure that these deals work in your favour and that you remain in control of your destiny and not get swept away with hasty decisions and potentially dangerous marketing trends.

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