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Groupon is exploding, does it make sense for your biz?

11/17/11 5:22 PM / by Market Hardware

“Deal of the Day” Online Couponing for Small Business

Groupon DealsMost of us know at least one person who has purchased a super deal on Groupon. These “group coupon” services are exciting for consumers eager to take advantage of deeply discounted products & services. Groupon is most popular in retail, food & entertainment, and tourism. But the seemingly endless flow of new buyers has home contractors, pet care pros and many other small businesses scratching their heads, thinking “does this make sense for me too?” (Hint: keep reading).

Imagine you’re a plumbing contractor who advertises a $100 flat rate coupon to unclog a bathroom sink. Groupon’s pricing model requires businesses to offer at least 50% off a service or product. The remaining sale price is then split 50/50 between the business and Groupon. In other words, in the best case scenario you’ll make $25 from each drain repair. Yes, you are losing money on each sale!

Why You Should Care:

Bottom line: given the lack of profitability, Groupon and the other daily deal sites just aren’t practical for many service-oriented small businesses. Some web experts will point to theoretical repeat business as a main driver behind daily deal sites, but the best return on investment lies in the basics. Today, this still means Google – not Groupon. Having a professional, 2012-ready website and targeting it at customers with Google advertising ensures you get more new business from the Internet. Have a great deal to offer? Ok, promote it on your Website and Google so you can keep all the revenue yourself. We can explain how when you contact us.

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Client Success Spotlight: The Lighting Geek

Thelightinggeek.comThis month’s client spotlight is on lighting expert Tommy Herren of Sacramento, CA. Tommy’s business specializes in full service, high-end landscape illumination. He recently built a site with Market Hardware. “I already owned the local market when it came to traditional advertising, but my competitors were getting more business from the web. My old website was not SEO friendly -- I was not utilizing the power of Google. Market Hardware helped me fix that.”

Give us a call at 888-381-6925. We’ll explain how a professional website like will help your business in 2012.

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Web Experts of the Month:

Web Experts Andrea and SharonThis month we celebrate two winners – Andrea Talley and Sharon Bassett.

Andrea is a Website Project Manager responsible for collaborating with clients on our high-end website builds. She is successful at communicating with clients, understanding their needs and guiding them through the website build process. Andrea has a serious history of gathering client praise... and ours too!

Sharon is a Senior Web Designer & Developer who works behind the scenes making website projects come to life. Clients and coworkers alike have high praise for Sharon’s unique design styles. Her ability to seek out efficiencies reduces design and build times. What this means for you is high-end websites at an affordable cost.

Together, Andrea and Sharon are responsible for Tommy Herren’s new site. He added this,“Working with Market Hardware was awesome. My design team was very professional and well-organized. It was great!”

Because SEO was so important, Tommy also signed up for Market Hardware’s "Google Maps Optimization" service. His business was listed on Page One of Google for Sacramento and El Dorado Hills within a couple months.

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Web Marketing Factoid:

Google's search advertising was up 32% in the U.S. for Q3 2011 vs. Q3 2010. (source: Covario, Rimm-Kaufman Group)

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Topics: General Posts

Market Hardware

Written by Market Hardware