Everybody likes a deal, no question about that. And there are lots of online deals to be had, whether through coupons or via sites like Groupon or Living Social. But are those deep discounts good for the business owner?
My questions to you, dear readers, are these:
1. Have you ever purchased a coupon from Groupon or Living Social?
2. Was it for a restaurant/coffee shop, or was it for a service or hotel room?
3. If you've purchased and used a coupon, have you then returned to that business and paid full price for the item you previously received at a discount?
Because herein lies the rub. If we offer discounts through Living Social, the company insists that we offer our rooms for 50 percent off the regular price. Then of the money that users pay, Living Social keeps an additional 35 percent.
Not being a math whiz, I got out my handy calculator to see what this means in dollars and cents. Here's what I found out. If someone buys a gift certificate (as they call them) for $50, for a room that typically sells for $100, then what I keep from that purchase is $32.50. From that, I have to cover our utilities, mortgage payment, insurance, laundry, housekeeping and, oh yeah, breakfast.
Maybe that makes sense, IF that purchaser then becomes a repeat customer. But does that happen, or do the purchasers then go on to the next deal of the day?
Your thoughts?
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Better idea: have your own coupons printed up and sell them to your guests. It probably wouldn't cost more than $100 to print 500 or so coupons and those getting them would have the hearty recommendation of a satisfied guest.
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