Why I choose not to use Groupon or Yelp Deals.

Everyone loves a deal right? Groupon is a great way to get a deal and to experience what a business has to offer.  The hopes of the owner is to have you love the business so much that you refer other people and come back again when needed.  The hopes of the patron is to get quality service at a fair price.  Making both the business and the customer happy can be tricky.  Here are some Pros and Cons to using Groupon from a business perspective.

First lets talk about how Groupon works. Groupon allows businesses to use their database which is high on search engines to find discounts. Most times this is a 50% discount which is only offered for a limited time.  Groupon provides a way to get new people to the business at the same time the customer gets a deal. Sounds like a win, win situation right? Well, it can be for some, but it may not be for others.

Here are the Pros:
1. Immediate increase in business because everyone likes a deal.
2. Increased visibility to your business.
3. New customers that you may not have already seen before.

Cons:

1. Don’t know how much of a surge of business there will be and if your business can handle such an influx.

2. Groupon keeps 50% of business profits so if you are already discounting the price by 50% now the business makes no profit at all on services and can actually lose a lot of money.

3. A high percentage of these first time people do not return. Research has shown that only about 19% of customers come back for a second visit. In 2011, it was estimated that 87% of people who use Groupon don’t come back to pay full price at a business and expect the same low price if they do decide to return.

4. It may appear that the business is desperate which is not what any business wants.

I decided a while ago to use a Yelp deal. This deal gave a discount to new customers and gave me a higher ranking on yelp. Not only did I lose money but the people who were using this services wanted a lot more than was offered on the deal. If they decided it wasn’t what they wanted as far as a bargain was concerned, they wrote bad reviews. I learned quickly that this was not for me or my business. My prices are competitive already and I offer the range of care with no extra charges for helping those in need.

I do know some business owners who use Groupon and they like having an influx of new people to spread the word about their business. Don’t get me wrong, my sole motivation in life and in business is to help others and money is not a large factor for me but working harder and getting paid less just doesn’t seem in my best interests or in anyone that is coming in the door. I want to spend quality time with each person and help, not have time constraints because of an influx of people.

I love what I do and I love to help, I just don’t think Groupon should take 50% of my income and because I am a doctor who wants people to stay healthy, this means one visit will probably not do the trick.  Just like going to a gym, you are not in shape by going once.

So, to make sure everyone is happy, I offer quality services at a competitive price. Now that is a win, win! If you are interested in getting the full spectrum of health, give our Redwood City Chiropractic office a call. We can help!