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7 Ways to Help You Benefit from Group Buy Sites

November 20, 2012

Group-buy sites are becoming increasingly popular, offering the client a significant discount and promising businesses high volume. But businesses beware! Even if your market is being inundated with deal-of-the-day offers that are destroying your business, and you wan’t to keep up, make sure you do your homework and understand how these deals really work. Here are seven ways to play the Group-Buy game and come out on top:

  1.  Negotiate the terms, especially the commission taken by the deal-of the- day site. They will ask for at least 50% but depending on the number of salons and spas promoting in your area they may settle for less.
  2. Create an offer that is of low value but favors repeat visits. Instead of a full makeover at a deep discount, offer a series of 3 half-head highlights or 3 cuts and blow-dry, both of which facilitate add-ons and promote repeat visits.
  3. Be clear about the fact that the discount only applies to certain service providers (with names specified) and that appointments can only be made between Sunday and Wednesday.
  4. Negotiate a limit on the number of deals you are willing to sell. You know how many open spots you have on average in one week, so plan that the maximum you can offer is about 3 months of open slots e.g. if you have 20 open spots per week, then your maximum should be about 250 deals.
  5. Remind your customers.
    A few days before the deal goes online, contact your current customers and offer the exact same deal under the same conditions.
  6. Make sure you are ready for the action.
    Have extra staff available for the volume of incoming calls, hire extra assistants for the first 3 months of your deal, and stock up on extra retail.
  7. Be ready to upsell and pre-book
    To make up for the slash in prices, entice clients to make extra purchases with discounts and special offers.
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One Comment
  1. Not what I was hunting for but wonderful anyway! Nice one!

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