Author Topic: Potential Groupon money-saving hack?  (Read 5074 times)

The Money Monk

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Potential Groupon money-saving hack?
« on: May 15, 2014, 01:31:09 PM »
For those who don't know, when a business uses Groupon they have to pay 50% of the list price to Groupon when an item sells.

So if they are listing a normally $60 massage for $35 on Groupon, the masseuse actually only gets $17.50 for that sale.

The benefit is the distribution that Groupon gives the businesses. Getting in front of that many new faces and potential new customers can be worth it, even when only getting around 25% of their normal price point.

My idea (which would only work for smaller businesses, probably not large retailers) is if you see something on groupon you are interested in, do NOT buy it on Groupon. Instead contact the business and say you were about to buy it on groupon, but instead offer them slightly less to get the product outside of groupon. By cutting out groupon you would pay less, and the vendor would simultaneously get more.

So if you bought a $40 massage on groupon, the massage therapist would get $20.

Instead call them up and offer $30. You will pay 10 less, and they will get 10 more.


genius, right?

dragoncar

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Re: Potential Groupon money-saving hack?
« Reply #1 on: May 15, 2014, 01:39:35 PM »
This violates their contract with groupon and they probably won't do it because I'm sure groupon audits this with mystery shoppers.  Can't hurt to try though.  I like the savings of groupons but they definitely screw over a lot of businesses (although I guess that's harsh since the businesses are agreeing to participate... I just doubt it's ever that helpful to them unless they play the whole "increase prices before groupon" game"

hybrid

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Re: Potential Groupon money-saving hack?
« Reply #2 on: May 15, 2014, 01:56:49 PM »
Agreed, I would venture this very probably violates their contract with Groupon. If you do this, you are encouraging them to be unethical. I'm all for thinking outside of the box, but not this way.

CommonCents

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Re: Potential Groupon money-saving hack?
« Reply #3 on: May 15, 2014, 03:22:30 PM »
Groupon can't prohibit them from offering a discount to people (e.g. military, over 65, students, dissatisfied customer, etc.).  This is just one more discount.  (And groupon doesn't have time for mystery shoppers I bet.)  I went to a place that told me returning people could get the same price as the groupon, and would allow you to tell your friends too, which is the equivalent.  So I happily pass on that tidbit to anyone who remarks about my glassblown blue pumpkin on my desk I made, and send them business.

For the record, it's not always 50%.  I work with a nonprofit where we have it set at 60% (us).  We also try to be smart about it and time it for our low use time period, during spring and fall.  And also consider it partially advertising.  Even still, I'm not convinced we should continue the practice.

eil

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Re: Potential Groupon money-saving hack?
« Reply #4 on: May 15, 2014, 03:28:22 PM »
Observation 1: The kinds of things that come up on Groupon are luxury consumerist horse shit that no real Mustachian would ever actually want let alone need. (Massages, fancy restaurants, dessert parlors, touchless car washes, flowers, gym memberships, etc.) If you find yourself buying things on Groupon with any sort of regularity, you should instead be treating yourself to a few face punches.

Observation 2: Most business owners will happily give you a discount if you're friendly and ask tactfully. No need to swindle Groupon here.
« Last Edit: May 15, 2014, 03:32:52 PM by eil »

dragoncar

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Re: Potential Groupon money-saving hack?
« Reply #5 on: May 15, 2014, 03:29:26 PM »
Groupon can't prohibit them from offering a discount to people (e.g. military, over 65, students, dissatisfied customer, etc.).  This is just one more discount.  (And groupon doesn't have time for mystery shoppers I bet.)  I went to a place that told me returning people could get the same price as the groupon, and would allow you to tell your friends too, which is the equivalent.  So I happily pass on that tidbit to anyone who remarks about my glassblown blue pumpkin on my desk I made, and send them business.

For the record, it's not always 50%.  I work with a nonprofit where we have it set at 60% (us).  We also try to be smart about it and time it for our low use time period, during spring and fall.  And also consider it partially advertising.  Even still, I'm not convinced we should continue the practice.

Sure they can if it's in the contract.  No idea if it's enforced, but I suspect this approach would be really common otherwise.  OP try it and report back!

Observation 1: The kinds of things that come up on Groupon are luxury consumerist horse shit that no Mustachian would ever actually want let alone need. (Massages, fancy restaurants, dessert parlors, touchless car washes, etc.)

Observation 2: Most business owners will happily give you a discount if you're friendly and ask tactfully. No need to swindle Groupon here.

They aren't all fancy restaurants.  Some of my favorite groupons are already cheap indian restaurants made even cheaper.

Also, I'd love to hear your approach for getting discounts.  Do you approach life with an "everything is negotiable" attitude?
« Last Edit: May 15, 2014, 03:34:34 PM by dragoncar »

CommonCents

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Re: Potential Groupon money-saving hack?
« Reply #6 on: May 15, 2014, 03:54:07 PM »
You need to give a reason for the discount. If you just appear a bargain hunter, they'll think (true) you are off to the next deal afterwards. Try offering more than the deal - more visits or more value, something that might show value to the owner or that you'll be a repeat customer.

Gin1984

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Re: Potential Groupon money-saving hack?
« Reply #7 on: May 15, 2014, 04:18:19 PM »
Groupon can't prohibit them from offering a discount to people (e.g. military, over 65, students, dissatisfied customer, etc.).  This is just one more discount.  (And groupon doesn't have time for mystery shoppers I bet.)  I went to a place that told me returning people could get the same price as the groupon, and would allow you to tell your friends too, which is the equivalent.  So I happily pass on that tidbit to anyone who remarks about my glassblown blue pumpkin on my desk I made, and send them business.

For the record, it's not always 50%.  I work with a nonprofit where we have it set at 60% (us).  We also try to be smart about it and time it for our low use time period, during spring and fall.  And also consider it partially advertising.  Even still, I'm not convinced we should continue the practice.

Sure they can if it's in the contract.  No idea if it's enforced, but I suspect this approach would be really common otherwise.  OP try it and report back!

Observation 1: The kinds of things that come up on Groupon are luxury consumerist horse shit that no Mustachian would ever actually want let alone need. (Massages, fancy restaurants, dessert parlors, touchless car washes, etc.)

Observation 2: Most business owners will happily give you a discount if you're friendly and ask tactfully. No need to swindle Groupon here.

They aren't all fancy restaurants.  Some of my favorite groupons are already cheap indian restaurants made even cheaper.

Also, I'd love to hear your approach for getting discounts.  Do you approach life with an "everything is negotiable" attitude?
They are enforced, groupon has been known to sue the hell out of businesses.  The better idea is to ask, after going once, if they have a next time discount.  They do cold calls to test this with businesses.

Falconer

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Re: Potential Groupon money-saving hack?
« Reply #8 on: May 15, 2014, 11:49:33 PM »
DanClarkie will be able to answer this 100% correctly since he was SEO for groupon.

The Money Monk

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Re: Potential Groupon money-saving hack?
« Reply #9 on: May 16, 2014, 06:56:50 AM »

They are enforced, groupon has been known to sue the hell out of businesses.  The better idea is to ask, after going once, if they have a next time discount.  They do cold calls to test this with businesses.

do you have a link for any instances of them suing for this reason?

I don't see how legally they could prohibit a business from making a deal with a customer just because that customer heard that the business was running a Groupon.

What, are they somehow not allowed to give any other discounts or adjust pricing while the groupon is in effect? I don't remember any such restrictions when we ran ours

The Money Monk

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Re: Potential Groupon money-saving hack?
« Reply #10 on: May 16, 2014, 07:09:33 AM »
Observation 1: The kinds of things that come up on Groupon are luxury consumerist horse shit that no real Mustachian would ever actually want let alone need. (Massages, fancy restaurants, dessert parlors, touchless car washes, flowers, gym memberships, etc.) If you find yourself buying things on Groupon with any sort of regularity, you should instead be treating yourself to a few face punches.

Observation 2: Most business owners will happily give you a discount if you're friendly and ask tactfully. No need to swindle Groupon here.

1.  I know all 'mustachians' don't agree with this, but for me it is all about savings rate, and what particular items you spend your money on is mostly irrelevant.

People accept the "quality of life issue" excuse for random non-neccessity things like pets and travel, but not for other non-necessity things like meals out or a boat.

If a person has a 50% savings rate, does anyone here really care if they spend 100 bucks a month on fancy meals out instead of a stupid yappy dog?

2. How is the situation I described "swindling" groupon? Swindle implies some kind of fraud or deception.

If I somehow find out that a business is willing to accept x price, how is offering higher than that for their services swindling anybody? Does simply knowing about the groupon deal prevent me from doing business with a company unless its through the groupon? I call shenanigans on that
« Last Edit: May 16, 2014, 07:24:45 AM by The Money Monk »

Gin1984

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Re: Potential Groupon money-saving hack?
« Reply #11 on: May 16, 2014, 07:10:47 AM »

They are enforced, groupon has been known to sue the hell out of businesses.  The better idea is to ask, after going once, if they have a next time discount.  They do cold calls to test this with businesses.

do you have a link for any instances of them suing for this reason?

I don't see how legally they could prohibit a business from making a deal with a customer just because that customer heard that the business was running a Groupon.

What, are they somehow not allowed to give any other discounts or adjust pricing while the groupon is in effect? I don't remember any such restrictions when we ran ours
It was in the news (so I don't have a link) a few years ago, back when I had TV. :)

The Money Monk

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Re: Potential Groupon money-saving hack?
« Reply #12 on: May 16, 2014, 07:20:44 AM »

They are enforced, groupon has been known to sue the hell out of businesses.  The better idea is to ask, after going once, if they have a next time discount.  They do cold calls to test this with businesses.

do you have a link for any instances of them suing for this reason?

I don't see how legally they could prohibit a business from making a deal with a customer just because that customer heard that the business was running a Groupon.

What, are they somehow not allowed to give any other discounts or adjust pricing while the groupon is in effect? I don't remember any such restrictions when we ran ours
It was in the news (so I don't have a link) a few years ago, back when I had TV. :)

Just did a quick google search and couldn't find anything. Lots of articles about Groupon being sued, lol, but none I saw about them suing merchants for going around them.