Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie
Groupon / Living Social
Options
-
23-04-2012 9:33am#1Anyone have a voucher from Groupon where the supplier has apparently gone out of business?
I have been on hold now for about 35 minutes looking to speak to someone about a refund as the business I bought a voucher from is constantly engaged.
When I called Groupon and pressed the right buttons to be put through to sales naturally I get through in about 3 seconds....
And these guys Groupon are the best thing since sliced bread according to them....
By the way, if you are a business thinking of using them, bear in mind that they take 70% of everything that the customer pays, so if you can survive on the 30% left then you'll do very well out of it...0
Comments
-
They don't take 70%, they take variable amount depending on the business they are dealing with they took 30% from us and once you plan ahead do at the time of negotiation you have priced your item high enough you can basically get close to normal full retail
We only dropped about 8% off full retail even after paying groupons percentage.
Living social are far better btw0 -
Maybe peoples experiences are different then because here are the terms I understood Groupon / Living Social worked from:Hammertime wrote: »They don't take 70%, they take variable amount depending on the business they are dealing with they took 30% from us and once you plan ahead do at the time of negotiation you have priced your item high enough you can basically get close to normal full retail
We only dropped about 8% off full retail even after paying groupons percentage.
Living social are far better btw
50% of everything that goes to the business - so if you are a nail salon and you sell treatments for 45 Euros, every time a consumer pays Groupon / Living Social for a treatment and you 'deliver ' the service, you get half that - thats 22.50 euros. Groupon / Living Social keep the rest as commission.
Furthermore, if the customer doesn't take up the offer, they the customer still pay Groupon / Living Social for the voucher and you get nothing - except maybe a few customers with the 'I lost my voucher, can you give me the treatment' story.
So you will have 50% of your normal retail price to survive on.
Hammertime you did better than average to get away with giving Groupon / Living Social 8% - better than anyone else I've heard of. Can you tell people what sort of business you operate?
Back to my original question - customer service from Groupon / Living Social - any experiences, positive and negative?0 -
There is an obligation to discount by 50 % or thereabouts to make it a deal. Of what remains typically groupon take 30% and they charge vat on this. So you might end up getting 25-30% your normal retail price.
Maybe peoples experiences are different then because here are the terms I understood Groupon / Living Social worked from:Hammertime wrote: »They don't take 70%, they take variable amount depending on the business they are dealing with they took 30% from us and once you plan ahead do at the time of negotiation you have priced your item high enough you can basically get close to normal full retail
We only dropped about 8% off full retail even after paying groupons percentage.
Living social are far better btw
50% of everything that goes to the business - so if you are a nail salon and you sell treatments for 45 Euros, every time a consumer pays Groupon / Living Social for a treatment and you 'deliver ' the service, you get half that - thats 22.50 euros. Groupon / Living Social keep the rest as commission.
Furthermore, if the customer doesn't take up the offer, they the customer still pay Groupon / Living Social for the voucher and you get nothing - except maybe a few customers with the 'I lost my voucher, can you give me the treatment' story.
So you will have 50% of your normal retail price to survive on.
Hammertime you did better than average to get away with giving Groupon / Living Social 8% - better than anyone else I've heard of. Can you tell people what sort of business you operate?
Back to my original question - customer service from Groupon / Living Social - any experiences, positive and negative?
That's a big cut. Some people have been caught out by not being fully aware of this.0 -
They take 50% of all sales. If you are a mutli-national or are giving them bulk discounts than they may reduce their "cut" , They are no different to Last Minute.com and from experience I find Group On bad to deal with.
You Have no come back with them if you turn up at the Hotel and they are overbooked, While I like a bargain it needs to be kept in mind that these guys are killing the small hotels which is leading to serious job losses.
Personally I would prefer to use last minute or contact the provider direct and see if they will give you a deal. Normally the provider will be happy to give you a discount which will be the same and they are happy that they don't have to pay commission.0 -
Don't go near buying from Living & Social as their returns/complaints department are so rude. It took me 4 days of being on hold to get someone to actully talk to me. Then they told me that they don't give any refunds but I have to talk to the shop it was bought against. The whole reason I wanted the refund was the shop was so dodgy I wasn't trusting them to cut my hair. Even though Living&Social having paid the shop yet (they only do when you give the vouchure over).. they just kept repeating a pre-prepared speech & refused to put me through to anyone more senior.
I've deleted my account with them & I suggest no-one buy from them unless 100% guaranteed to use it.0 -
Advertisement
-
I eventually got through to the company that supplied the service, they had 4 different phone numbers. They just dont make it easy to contact them. I got the same run-around that the last poster got from Groupon / Living Social - take it up with the supplier.
I wouldnt be buying again from Groupon / Living Social, and frankly if anyone is going to buy from them, then look out, you may lose your money if the business you are buying from goes bust. Apart from that they will do their damndest to make it difficult to redeem your voucher.
Buyer beware then......0 -
summerb246 wrote: »Don't go near buying from Living & Social as their returns/complaints department are so rude. It took me 4 days of being on hold to get someone to actully talk to me. Then they told me that they don't give any refunds but I have to talk to the shop it was bought against. The whole reason I wanted the refund was the shop was so dodgy I wasn't trusting them to cut my hair. Even though Living&Social having paid the shop yet (they only do when you give the vouchure over).. they just kept repeating a pre-prepared speech & refused to put me through to anyone more senior.
I've deleted my account with them & I suggest no-one buy from them unless 100% guaranteed to use it.
So you bought something, a haircut, then you decide you didn't want it.
To be perfectly honest you should have done your research on the hair salon before buying the deal.
It costs money to pay people all along the line to deal with you looking for a refund so once this cost is deducted I doubt there would be much of your money left, once you pay people to sort out the fact that you didn't really want your purchase.0 -
rainbowdash wrote: »So you bought something, a haircut, then you decide you didn't want it.
To be perfectly honest you should have done your research on the hair salon before buying the deal.
It costs money to pay people all along the line to deal with you looking for a refund so once this cost is deducted I doubt there would be much of your money left, once you pay people to sort out the fact that you didn't really want your purchase.
I bought something, then couldn't get through to the supplier to book an appointment. Clearly I wanted something, but I was not being supplied with what I paid for.
It costs me to phone people all day long too, although I don't get paid wages by anybody. Once the cost of chasing up the suppliers who change their phone numbers regularly to avoid comsumers like me is factored in, Groupon / Living Social are expensive.
So looking at this, it is a bad deal for the supplier who has to supply goods and services at a cut price.
The consumer gets a bad deal because sometimes the supplier goes out of business, so they don't get what they pay for.
So the person who does best is Groupon / Living Social, who get paid MORE when the goods / services are NOT delivered - WTF sort of incentive is that to ensure that the supplier does not supply what Groupon / Living Social were paid for?
If it looks like a duck, and it quacks like a duck it probably is a duck. This really is a scam by another name folks.0 -
I bought something, then couldn't get through to the supplier to book an appointment. Clearly I wanted something, but I was not being supplied with what I paid for.
It costs me to phone people all day long too, although I don't get paid wages by anybody. Once the cost of chasing up the suppliers who change their phone numbers regularly to avoid comsumers like me is factored in, Groupon / Living Social are expensive.
So looking at this, it is a bad deal for the supplier who has to supply goods and services at a cut price.
The consumer gets a bad deal because sometimes the supplier goes out of business, so they don't get what they pay for.
So the person who does best is Groupon / Living Social, who get paid MORE when the goods / services are NOT delivered - WTF sort of incentive is that to ensure that the supplier does not supply what Groupon / Living Social were paid for?
If it looks like a duck, and it quacks like a duck it probably is a duck. This really is a scam by another name folks.
Well if the shop is a bit dodgy on going through with the deal then that's a different matter. I have bought 3 meal deals for around €20-25 for 2 adult meals in restaurants and they all were great value, but if the restaurant is only getting around half the money I pay I can't see hOw they would survive, they must be getting around €7 for a steak dinner!!!0 -
By the way, if you are a business thinking of using them, bear in mind that they take 70% of everything that the customer pays, so if you can survive on the 30% left then you'll do very well out of it...
wrong50% of everything that goes to the business - so if you are a nail salon and you sell treatments for 45 Euros, every time a consumer pays Groupon / Living Social for a treatment and you 'deliver ' the service, you get half that - thats 22.50 euros. Groupon / Living Social keep the rest as commission.
Furthermore, if the customer doesn't take up the offer, they the customer still pay Groupon / Living Social for the voucher and you get nothing - except maybe a few customers with the 'I lost my voucher, can you give me the treatment' story.
?
wrongThere is an obligation to discount by 50 % or thereabouts to make it a deal. Of what remains typically groupon take 30% and they charge vat on this. So you might end up getting 25-30% your normal retail price.
That's a big cut. Some people have been caught out by not being fully aware of this.
right - 30% is about the average they take now.Recessionbust wrote: »They take 50% of all sales. If you are a mutli-national or are giving them bulk discounts than they may reduce their "cut" , .
wrong
All these deals sites are a form of advertising. they have a rate card just like Boards do and the Irish Times and RTE TV.
If an advertising rate card was classified as a book, it would be under "fiction" as no-business anywhere in the world pays full rate card price except in exceptional circumstances.
You haggle with them, they haggle back, you do your sums and if it adds up, you do the deal. Same when you are looking to do newspaper advertising or radio advertising.
If a coupon is not redeemed, you keep the money - the only exception is groupon, but again this is negotiable.
Depending on the product / service, redemption rates can be as high as 100% or as low as 70%, but mostly its about 90%.
My experience in this - I've done deals. they've been hugely successful. I've had about a 30% customer return rate and in the past 2 years the deals added about 6000 customers to my mailing list. I make about €2 on the deal, but within 3 months I'm a winner with returning customers and has allowed me build an unasailable position in my area of business.
I won't tell you my commisson and who I deal with, (I deal with 2 sites and I get the same deal from both - even Boards offered to match the commission) but it is miles from any of the figures mentioned on this thread and very close to single figures.0 -
Advertisement
-
A study by Rice University noted that 22% of coupons are not redeemed - even though the punter has paid.
20% of coupons punters returned to the business a second time. That can be an expensive way to get new customers.
If you are a business and are thinking of taking a punt - do your homework first - there are an absolute myriad of variables.
Here's a 'coupon calculator' that will give you an idea of the numbers.
C0 -
A study by Rice University noted that 22% of coupons are not redeemed - even though the punter has paid.
20% of coupons punters returned to the business a second time. That can be an expensive way to get new customers.
If you are a business and are thinking of taking a punt - do your homework first - there are an absolute myriad of variables.
Here's a 'coupon calculator' that will give you an idea of the numbers.
C
That's in the USA where its a more throwaway society. In Ireland according to the 2 companies I deal with, the redemption rate is close to 90%. In my case, the redemption rate was over 99% - but I have multiple locations and it was dreadfully easy to redeem.
BTW - Excellent calculator and very accurate.0 -
By the way, if you are a business thinking of using them, bear in mind that they take 70% of everything that the customer pays, so if you can survive on the 30% left then you'll do very well out of it...
wrong50% of everything that goes to the business - so if you are a nail salon and you sell treatments for 45 Euros, every time a consumer pays Groupon / Living Social for a treatment and you 'deliver ' the service, you get half that - thats 22.50 euros. Groupon / Living Social keep the rest as commission.
Furthermore, if the customer doesn't take up the offer, they the customer still pay Groupon / Living Social for the voucher and you get nothing - except maybe a few customers with the 'I lost my voucher, can you give me the treatment' story.
?
wrongThere is an obligation to discount by 50 % or thereabouts to make it a deal. Of what remains typically groupon take 30% and they charge vat on this. So you might end up getting 25-30% your normal retail price.
That's a big cut. Some people have been caught out by not being fully aware of this.
wrongRecessionbust wrote: »They take 50% of all sales. If you are a mutli-national or are giving them bulk discounts than they may reduce their "cut" , .
wrong
All these deals sites are a form of advertising. they have a rate card just like Boards do and the Irish Times and RTE TV.
If an advertising rate card was classified as a book, it would be under "fiction" as no-business anywhere in the world pays full rate card price except in exceptional circumstances.
You haggle with them, they haggle back, you do your sums and if it adds up, you do the deal. Same when you are looking to do newspaper advertising or radio advertising.
If a coupon is not redeemed, you keep the money - the only exception is groupon, but again this is negotiable.
Depending on the product / service, redemption rates can be as high as 100% or as low as 70%, but mostly its about 90%.
My experience in this - I've done deals. they've been hugely successful. I've had about a 30% customer return rate and in the past 2 years the deals added about 6000 customers to my mailing list. I make about €2 on the deal, but within 3 months I'm a winner with returning customers and has allowed me build an unasailable position in my area of business.
I won't tell you my commisson and who I deal with, (I deal with 2 sites and I get the same deal from both - even Boards offered to match the commission) but it is miles from any of the figures mentioned on this thread and very close to single figures.
Not wrong.
Maybe you had a different experience. What I've stated was fact. Not sure why you are selling groupon so hard.0 -
Not wrong.
Maybe you had a different experience. What I've stated was fact. Not sure why you are selling groupon so hard.
If you can show me where I mention Groupon in a good way - I'll give you 10k.
Out of all the sites, Groupon are the worst operators with the poorest staff training.
I have done these deals, I have met with most of the opearators, some are better than others, some will discount their fees more than others, but no-one, unless you are a really bad negotiator, pays 50%.
But apologies to you - i mis-read your paragraph. 30% is about the average rate for these sites and if you donl;t do your sums, it can go horribly wrong.
Rule #1 - Get your suppliers on board
Rule # 2 - set a limit
Rule # 3 - don't scrimp on the service, if anythign go overboard and then the custoemr will come back.
Rule # 4 - vary the offer but never offer your main product / service.
In rule #4 - for restaurants, I'd suggest Lunch or Mid week meals, for hair salons, I'd offer treatments that exclude cuts / blowdrys / conditioning, for hotels, I'd exclude July/August.
The trick is then to get their details onto your mailing list - so tell them you'll confirm their booking by email.
Lo and behold, if you've given a good service you have a nice mailing list. And then you use a mailing programme and send out marketing mails once a month. In my experience about 35% read the emails and return rate is very good.
However, if you think you just do a deal and not do any follow up marketing, then you won't gain from them. - And if the margin is not in your business, avoid at all costs. - Last year an off licence did a deal and had no restrictions. I reckon they lost 40k on the deal.0 -
Good information here from someone who sounds like they have been around the block with this.If you can show me where I mention Groupon in a good way - I'll give you 10k.
Out of all the sites, Groupon are the worst operators with the poorest staff training.
I have done these deals, I have met with most of the opearators, some are better than others, some will discount their fees more than others, but no-one, unless you are a really bad negotiator, pays 50%.
But apologies to you - i mis-read your paragraph. 30% is about the average rate for these sites and if you donl;t do your sums, it can go horribly wrong.
Rule #1 - Get your suppliers on board
Rule # 2 - set a limit
Rule # 3 - don't scrimp on the service, if anythign go overboard and then the custoemr will come back.
Rule # 4 - vary the offer but never offer your main product / service.
In rule #4 - for restaurants, I'd suggest Lunch or Mid week meals, for hair salons, I'd offer treatments that exclude cuts / blowdrys / conditioning, for hotels, I'd exclude July/August.
The trick is then to get their details onto your mailing list - so tell them you'll confirm their booking by email.
Lo and behold, if you've given a good service you have a nice mailing list. And then you use a mailing programme and send out marketing mails once a month. In my experience about 35% read the emails and return rate is very good.
However, if you think you just do a deal and not do any follow up marketing, then you won't gain from them. - And if the margin is not in your business, avoid at all costs. - Last year an off licence did a deal and had no restrictions. I reckon they lost 40k on the deal.
Thanks for the information and the insights.0 -
-
Interesting thread - as a coupon buyer I'm on the other side of the fence to most of you here. Have to agree a lot with sandin - I have become a return customer to numerous business' that I discovered via deal sites. At the same time there are others that scrimped so much at the point of redemption that I'll never set foot in their shops/restaurants again.Last year an off licence did a deal and had no restrictions. I reckon they lost 40k on the deal.
I was one of the lucky ones that managed to redeem a voucher for the off-licence. I'd like to return more often to the place but its the wrong side of the city to me. They definitely lost cash on it, but more importantly they also lost a significant portion of potential future customers as they got to a point where to had to cancel the deal altogether and majority of those that bought coupons had to get their money back off the dealsite.0 -
Groupon/Living social and all these types of websites are detrimental to businesses. I wouldnt recommend anyone to go on. The only people who win out are Groupon. Dont go near them, they will too more damage than you think0
-
In my opinion you are looking at this the wrong way.
These deal websites are a way to advertise your business.
They have huge mailing lists for people who live in your general area and more importantly they read these emails a decent percentage of the time.
Don't treat these sites as an outlet to sell goods at a profit, get your name out there and have a limited number of people come to your business, give them good service and they may come back and they may recommend your business to other people.
Equate it to putting an ad in the paper as it is effectively advertising through a different media.0 -
I've had some awful dealings with living social going on nearly two months now. I have used them three times over 2 years. We got vouchers for a place that went out of business before we redeemed them. New owners took over about a month later, and we went to them. They said they don't accept the vouchers, contact living social about it.
18 days later, 4 emails to living social, 3 days on hold and I have had one email response saying they do not refund vouchers once 7 days have passed from purchase. The things have expired since yesterday as well. Makes no sense to me, as in their terms and conditions they say they refund if the business closes.
Consumer ombudsman for me I'd say now, but god what a royal PAIN. They make it as difficult as possible, in order to keep my cash.
Never ever using them again. Total frikken swizz.
At least with pigsback you can get pigpoints or whatever back.
What I do now, is when I see a deal I want, I contact the business directly myself and ask for the same offer. That way I get the deal, and they get the business, without the commission gangster in between.0 -
Advertisement
-
That's not a bad idea.
I bought a deal of Living Social a couple of weeks ago. Got a confirmation email and receipt saying my voucher was ready to be redeemed, went to get the deal only to find my voucher wasn't there in the app.
Checked on the PC, not there either. Fortunately they don't seem to have taken the cash either, but jesus, they sent me two confirmation emails...
Sent two email to the helpdesk - nothing! Won't use them again.0 -
my mum was listening to the radio and said she heard something about a new deal website here, but they were to be different that the current offerings, anyone know what that is about or the company in question?0
Advertisement