7 Reasons You Should Consider Groupon for Your Small Business

Hey there, have you heard about Groupon? It’s this awesome online coupon marketplace that can do wonders for your small business. Here’s how it works: you offer your products or services with a huge discount on Groupon, and they promote it to their massive audience. But here’s the catch – a certain number of people have to sign up for the deal to be valid. This creates some serious buzz around your business. Of course, you’ll have to give Groupon a cut of the profits, but hey, you’ll be reaching a ton of new customers!

Now, is Groupon the right move for your business? Let’s take a look at some situations where it could be a game-changer (or not) for you.

When Should You Consider Groupon?

1. Got Too Much Stuff

If you have a bunch of finished products just sitting around, Groupon can help you clear out your warehouse. It’s especially useful if holding onto that inventory is costing you a lot of money. Even if it means lowering your profits, using Groupon to sell those products can be a smart move.

Bringing in Customers

Groupon is a great way to attract new customers who may come back and buy more from you at full price. Think of the discount and the share of revenue you give to Groupon as a cost of acquiring those customers. This strategy works especially well for new products and services, as it allows customers to try them out and hopefully come back for more.

Boosting Sales

Even if you don’t come back after your first purchase, sometimes you might be tempted to buy more when you redeem your Groupon. For instance, if you use a two-for-one deal for sandwiches at my restaurant, you might also buy a drink or a snack at the regular price. If I can make up for the lower profits from the Groupon deal by selling additional items at full price, I’ve really succeeded.

Having Extra Space

Here’s an example: let’s say I offer a tourist service, like a cruise around the harbor. If there are any empty spots on the boat that I can’t fill, that’s money I’ve lost once the cruise starts. Instead, during the slow season, I can sell those empty spots through Groupon and still make some money.

Keeping the Business Going

If you’re a factory owner and you have too much equipment and staff, you can try using Groupon to sell that surplus instead of selling the equipment or letting go of employees. Groupon could provide a temporary boost to keep your business afloat during these difficult economic times.

Appealing to Young People

A large majority of Groupon users are young, with 68 percent falling between the ages of 18 and 34. So, if your products or services are geared towards this demographic, Groupon could be a great fit for you. However, it’s important to note that there are other significant demographic groups as well, with 77 percent of users being female. Take a look at Groupon’s user breakdown to see if it aligns with your target market.

Create Excitement

If you’re starting a new business or moving to a new location, Groupon can be a great way to introduce your product to a wide range of customers. Not only will people be excited about getting a great deal, but they’ll also likely share their experience with others. It’s a cost-effective way to reach new customers and let word of mouth do the rest of your marketing for you.

But there are times when Groupon may not be the best choice.

When you’re not prepared for a sudden rush of customers.

Just a word of caution: Groupon deals have the potential to bring in a large number of customers. Depending on the size of your business, these deals could generate more demand than you can handle. While customers usually have a long time to redeem their coupons, there’s always a chance that they’ll all come at once. And in that case, you need to be ready.

When you don’t have repeat sales.

If you can’t use the new connections you make with Groupon customers to bring in more sales, the money you make from their purchases won’t be as valuable. When people use Groupon, they get a big discount, so you want to make sure it’s worth it.

Have you ever tried Groupon for your business? Can you think of any other reasons to use or not use Groupon or similar services?

Have you ever tried Groupon for your business? Can you think of any other reasons to use or not use Groupon or similar services?