The Advantages of Using Groupon
If you are looking for cheap Rageway or Go Karting tickets there is no better place than Groupon, the group buying site offering daily deals on a wide range of local products and services, including entertainment and sports events. Groupon has proven to be extremely popular with consumers as it provides access to the best deals offered by local dining venues, retail stores, spas, theaters and much more. Everyone loves discounts, especially when money is tight. Using the services of Groupon that offers different deals each day in a city where it operates customers can save from 50% to 90% on a variety of products and services, including tickets on different shows and sporting events. In addition, the company offers daily coupons lists so customers could get an extra discount on the current Groupon promotions. It should be noted that the deal is only valid if a certain number of customers buy it within 24 hours. Groupon receives 50% of the revenues from each coupon deal.
Started in 2008, Groupon is a rapidly growing company that has changed the way people shop online. Groupon boasts 70 million subscribers and employs a dedicated staff of 1,500 working at numerous locations in cities across the U.S. and across 29 other destinations throughout the world. The company's revenue is said to reach $760 million in 2010.
If you still hesitate whether to subscribe to Groupon or not consider the following reasons in favor of group buying promotions.
1. It attracts a lot of consumers.
You can get an opportunity to find new customers who are looking for inexpensive deals and want to save money. You get to charge lower prices to new customers who aren't willing to pay more.
2. It advertises your business.
A Groupon promotion can introduce your business to consumers who are not aware of its existence. The point is that you must encourage customers to try your goods. If they like what they try they will come back to buy from you again. Your promotion should peak an interest in your product or service and at the same time increase your potential conversion rate and attract more customers.
3. It helps move inventory.
Groupon helps sell slow moving goods or unutilized services. Discounts are most attractive for merchants with low cost of goods sold. Use price deals to promote a cheap product. A Groupon type promotion should be something that you do occasionally for a specific reason.
4. It builds relationships.
You can use price promotion deals for building relationships with a customer rather than creating one-time buys. It's recommended to offer a specialized discount for different products or services, instead of offering discounts on a total bill.
5. It generates incremental revenue.
You can make money on promotions, provided that you have a fixed-cost or lowcost structure. A coupon deal can earn some extra cash by getting more bodies into the facility. For example, if customers pay $10 for a $20 service, the owner still earns $5 per voucher. Each merchant must estimate their costs, figure out the price that attracts customers as well as the number of customers, who will buy the coupon, and, consequently, estimate incremental revenues.