Marti Morenings
There was discussion about Groupon at the Global Spa Summit. On the positive side, some felt that it can be an extremely beneficial marketing tool for spas; however, on the flip side, there was talk that if not used correctly, Groupon can set negative pricing expectations for your clients and strike a real blow to your margins.
I am curious about your experiences with it–have you found a way to effectively use Groupon to build incremental business for your spa?
Kaye Hughes LMT Says:
July 14th, 2011 at 1:42 pmVisit Kaye Hughes LMT
As a therapist who works on commission, Groupon does not work for me. Why? Here’s why. I can offer a $60 treatment for a savings of 50% or $30. Groupon takes 50% of that so now I’m doing a session for $15. The salon takes their 30% and I am doing a treatment for $10.50. Historically the clients in my area do not re-book from deals like this.
Marti Morenings Says:
July 19th, 2011 at 4:04 pmVisit Marti Morenings
Thank you Kaye for taking the time to respond – this is definitely a controversial topic and we appreciate your viewpoint!
Monte Zwang Says:
July 22nd, 2011 at 6:25 pmVisit Monte Zwang
Groupon doesn’t hurt as much when you gradually grow the clients back to regular pricing. Offer a Groupon redeemer the same service at the same price if they re-book. Then offer a short package of two or three services at a slightly increased rate. I have found that if you don’t offer a service that offers a good deal that is still less than regular price, the clients don’t come back.
Marti Morenings Says:
July 24th, 2011 at 6:59 pmVisit Marti Morenings
Thank you for your input Monte. I also appreciate your recent blog ‘Is There A Good Time To Raise Prices’, where you provided some great insights on how to determine what that ‘sweet spot’ should be in terms of treatment pricing. This is such an important topic!