Group Buying 101: How to Ensure that your Group Buying Deal is a good deal for your Business
Yesterday, I wrote about the latest facts and figures related to group buying deals and small business. Today I wanted to follow up with more detailed explanation for how to ensure that you have the best possible experience (with the highest ROI) should your small business decide to offer a group buying deal.
The basic premise of the group buying deal is that a third party site offers a deal to their extensive, targeted list. They take a commission from the sales, in return you the business owner get a dramatic influx of new customers.
Group buying offers lots of potential reward, but with it comes some risks as well. Without proper preparation and thought, you could end up like Posie’s, a business which lost upwards of $8,000 offering a deal. From their experience, we can learn some strategies which are essential to ensuring that your business has a much more positive (and profitable) experience should you choose to take advantage of the advertising benefits of offering a deal through one of these deal channels. This video takes a look at the key factors you should determine before you start negotiating with the deal sites. Going into these discussions armed with soild prep and realistic expectations and numbers will ensure that the deal benefits you, and not just the deal channel and the customers.
Group buying is still a very new phenomenon, one which has not yet reached many of the smaller markets, but with the rampant success of Groupon and it’s myriad spinoffs we predict that group buying sites will be coming to your hometown soon. Would you be interested in offering a deal? What is the most attractive factor for you in offering a deal? What’s the biggest turn off? Let us know in the comments section below!