Groupon?

[kslust]

I think all in all, you took the big chance on Groupon (I commend you on your efforts in growing your business). which in my own situation, wouldn't. In saying that, I believe you should keep track of everything in terms of total income from "Groupon" bookings and the total mileage driven giving you an estimate on wear and tear on cars and the gas expense, as well as the paying of drivers (even if you are a 1 man show, put it as though you are paying yourself a minimum of $20/hr). Track all of this and get profit and loss report on it and let us know how you did and pretty much use your scenario as a case study, in which all of us could learn from your situation with them being groupon. I say this, because no matter which way I spun it, I would end up losing money in the end, doesn't appear that way with you though..... The worst part being that what Wade said "Those Groupon users are nothing but bottom feeders", and I would be afraid of no repeat clientele or if they do they'll end up wanting the same BS deal, and they'll go somewhere else just looking for the next "deal" regardless of the service provided.

[nvthslex]

Wow, just thinking about someone arguing about splitting 1 hr at a groupon price gave me a stomach ache. It sounds like it is working for you, but I'll pass.

Its not too bad right now, but there are the groupons that did purchase more than 1 hour which will make it work.
But yes, there is no way I am splitting an hr trip for a groupon.

This is nuts. Those Groupon users are nothing but bottom feeders.

My experience is that they want everything for free, one even requested is there free drinks. Its ridiculous what groupon brings in.

I have never in my life heard of someone who wanted to split an hour like that. WTH are they thinking?

Same here its like they think limousines are a taxi service. I understand a two hour split that I do not mind doing during the week. I do not think anyone else in my area even rents out a stretch for 1 hr. Minimum is 2 hrs.

I think all in all, you took the big chance on Groupon (I commend you on your efforts in growing your business). which in my own situation, wouldn't. In saying that, I believe you should keep track of everything in terms of total income from "Groupon" bookings and the total mileage driven giving you an estimate on wear and tear on cars and the gas expense, as well as the paying of drivers (even if you are a 1 man show, put it as though you are paying yourself a minimum of $20/hr). Track all of this and get profit and loss report on it and let us know how you did and pretty much use your scenario as a case study, in which all of us could learn from your situation with them being groupon. I say this, because no matter which way I spun it, I would end up losing money in the end, doesn't appear that way with you though..... The worst part being that what Wade said "Those Groupon users are nothing but bottom feeders", and I would be afraid of no repeat clientele or if they do they'll end up wanting the same BS deal, and they'll go somewhere else just looking for the next "deal" regardless of the service provided.

Yes, will do. I can answer a few off the top. Average trip is 60 miles, that is going to their pick up place and dropping them off and driving back home. Right now I am a one man show, got another limo coming in, but will hire someone for that but give them the paying customers.
As for repeat clientele I am 110% sure 90% will not use a limo in a long time. Some have never ever been in a limo before but people talk, so again in hopes of word traveling for repeat business, and kids posting pics on facebook with the company name. I guess only time will tell.

Some were high school kids, so when I was at the school I saw people writing down the company name and web page. I have advertised in the rear windshield. So maybe prom and a graduation will come out of it.

Worst I got literally a bride to be, wants to use the 1 hour for her wedding just to pick up and drop off at location. Its on a Sunday so I said ok.
First time I heard of a wedding on a Sunday. Bridesmaid will see the company name so I guess it will help again in the future.

The tip I usually get pays for the gas. Repairs so far none yet, but I got to find a solution to my weird overheating issue. Hoping its an intermittent faulty relay or fan.


*** If considering groupon for a limousine ONLY do it in the off months. Make sure its continuous service in the fine print, so this way they cannot split any ride. And restrict it to your local area.

[brandon1]

The way you described your clients from groupon is the people I have been avoiding for the past 3 years by raising my prices slightly higher than most of the competition. When I first started my business plan was to drum up business by undercutting the competition and I got people just like that. I would never even think about considering a groupon. Like Wade said it's just full of bottom feeders, not someone you would want to target in this business.

[Pyro]

They called us about getting on board. After they got done talking I said no thanks. I will leave the ONE & DONE bookings to someone else. For the most part I want a better class of customer. I am sure there will be some low ball company that will use them around here ,but not us

[Geoff Levine]

I personally think the good outcome of the group online deals as per a limo service i did it once with taxes and all the spending on the top level limo service the profits were reasonable but it make the work on the road.

Huh???

[kslust]

Huh???

My thoughts exactly.

[nvthslex]

So another update on groupon;

- My rules, $59 first hour, each additional hour $99.

Got a few graduation days filled early in the week (for example one is on a Tuesday) which is rare, so I am happy with that (3 hour booking for about $250 with tax, gratuity we leave to the client). Being a new company I doubt I would have been on the list when searching for a limo, but now the company name is starting to spread, because of the groupons.

One prom from 2 pm-5 pm (groupon price: $59 first hour, $99 *3 + tax) which is also rare, still got another prom booked at 6:30 pm at $650. In the above calculation you will see the service is only 3 hours but are charged for 4 hours because of the 4 hour minimum package. Some groupon clients are understanding and do not have a problem following the company rules. While others say' well it didnt say that on the groupon'...

Had a groupon customer tip $70 for an hour ride because it was last minute reservation, and she lives 2 streets from my car wash.
And she booked another hour at $100. She works for a security company so it may lead to a corporate services (well Im hoping !)

Had about 45 groupons come sign waiver at my car wash, so far none showed up even with 10-15% off detailing services.

Got a a few weddings booked, my usual price is $575+ tax but with the groupon it becomes approx. $360 but I do not need to provide pastries which is part of my wedding package which is about $50. I loose money here but the weddings are next week, and since I started the business late in November, Weddings in May were practically all booked or reserved.
Average tip is about $15, some do not even tip, some $5, etc...

By looking at the customer list there are a few people who bought 2 and max 3 vouchers so they may be repeats.

But knowing that I have approx. 120 more groupons to go till Dec. 2012 I have a long way to go.

Side note, I ran a wash and wax groupon for my car wash, and this is one of the comments on my 'merchant page':

"Instead of putting an exterior wash and wax, they should put a complete, more expensive package. Just having the wax done is kind of odd. I was certain I was buying the whole package."


As you can see some people are just ....

If you are a big company that doesnt need bottom feeders and have corporate clients and are well established to keep you busy every weekend then I do not think groupon will be worth it for you.

I live in a city with 37 limo companies, 1.1 million people and you can travel on the freeway covering the length of the city in about 25 minutes tops.
And my car wash is located 18 minutes from my house in another province with only 3 limousine companies and a population of 300,000.

By advertising in both provinces with the groupon I think in 1-2 years time I will be known. Just this year I will have to take the hit of knowing I will not make much with the groupons. But have hopes that a few groupons will become regulars. And some come to the car wash with the 10-15% off detailing services.

Had 3 sweet 16s, and with the amount of pics posted on facebook, went for free advertisement...


Will send another update in a month or 2, the worst thing with groupons is that they think a 1 hour ride entails a company to prep the limo only 15 minutes before hand.

One lady asked for a 1 hr limo (groupon) from 4pm-5 pm on May 25th (busiest day due to prom) and I say I am fully booked.
She says you do not have room even for 1 hour....


Anyways, that would be it for now !

[nvthslex]

Oh one price shopping story:

One lady non groupon asks for a 2 hour service - Price $280 tax included
Next day same lady says can I get it for 1 hour, price is $150 + tax.... then she says whats the best price for 2 hours I was like $250 tax included. She paid cash...

So for $30 that is the difference between a 2 hour booking and a 1 hour booking, tip $20.

[nvthslex]

I just have to post this. Groupon Success...lol.


After serving about 100 clients from groupon from my limo deal. Today a client calls and asks, if I have a Hummer limo.


I reply, no but I do have a 14 passenger Ford...(didnt mention it was an excursion, not many people know).

Anyways she said she will call back, but mentioned she used my services before via groupon.


About 3 minutes later she asks about the price.... $300 for 1 hr. (yes thats right average price to rent a 14 pass. is 250 an hr).

The market im in is a gold mine, but they only rent Fri to sun.

Anyways, after a few more questions, if tax is included, and if we can bring our own music etc...

It was booked, at $300 for 1 hr from a past groupon client



I should have a final update when my groupon expires, with all my calculations, overall experience and whatever questions I can answer.

[Dream Limo]

I have talked to groupon several times. I was wanting to put togther a deal, but they wanted at least a 50% discount to offer and there rate was 50% of the sale price. Sorry I can't so a airport trip to our downtown area for $20. That don't hardly cover the chauffeurs tip.

[nvthslex]

See with me my take is 70%, reason is I have done quite a few groupons. Not with my limo company (1 is enough).But through my car wash business. But dont go for 50%, absolutely cant make any money let alone break even.


Now that its the winter months, and my groupon expires in 1.5 months im getting a rush of calls. Keeps me busy. Weddings are practically finished, and start back up in March.Problem is I might not be able to meet everyones request, especially on a Saturday.


So if they complain, or ask to extend the expiratory date I simply tell them to call groupon to get a refund. Its always best to say subject to availability.


I havent lost money overall, and made an impact in my local area especially with parents using the groupon for sweet 16s hoping they book me for prom in the coming 2 years.If you are an established company IMO you dont need groupon.

[brandon1]

http://www.chicagotribune.com/busine...,1451396.story

[BLVD Limo]

And to think that Google wanted to buy Groupon and Groupon rejected the offer. At the time, I said that Google got the better end of that deal.

[brandon1]

And to think that Google wanted to buy Groupon and Groupon rejected the offer. At the time, I said that Google got the better end of that deal.

I'm sure they didn't try to buy it just for the profit though, they also want things that will help them monopolize the internet. They bought youtube for an insane amount of money and I think 6 years later it's just starting to turn a profit.

[Limo Insurance King]

That was an interesting article Brandon. I knew Groupon and similar type operations were going to fold, I only wish that I had shorted the stock back at $20.