So You Want To Generate Extra Business Via A Coupon/Voucher Website? Answer These 4 Questions First

If you own a small-medium sized business and you’ve seen coupon/voucher sites like GrabOne.co.nz, Yazoom.co.nz, Cudo.co.nz advertise other small-medium sized business with TV ads and half page ads in the NZ Herald, then you must be thinking “how do I get me some of that?”

They are offering you the potential to make thousands of sales and expose your products/services to 10’s of thousands of people.

But before you get too excited, consider these 4 questions first.

Question #1: Are you happy with ZERO profit margin?

The first thing you need to do is decide if you are prepared to offer a discount of 50% to the public and provide 10-25% to the daily deal site as a commission, leaving you with 25-40% of your normal rate.

I’m guessing that is probably at (or below), your profit margin?

That’s right, plan to do no better then break even on your first try.

Question #2: How much business can you handle without being crushed to death?

Set the maximum number of customers you can handle.

Is it 10?

100?

1000?

Really?

Be realistic. Using a lawn mowing business as an example, 1000 customers wanting their lawns mowed next month at 25% of your normal rate will crush your business and probably piss off 990 of those customers.

Question #3: How will you make a profit?

The third thing to do is work out how you will upsell your other services (on which you collect your full profit margin).

You also need a strategy to lock in those customers long term.

For a lawn mowing business example, you could ask them to agree to a mowing schedule for the next 12 months, set those appointments in now, and get them to fill in an automatic payment form on the spot.

Question #4: Which daily deal website should you sign up with?

Contact all the daily deal sites and make your proposal. Most of them will turn you down (for their own reasons), but perhaps one or two will accept.

Good luck!

What do you think of this advice?

If you own a small-medium sized businesses and you’ve tried offering a daily deal, what did you learn? What advice do you have for others? Share your story in the comments below.

What Annoys You? What Do You Think Is Great? Your Chance To Tell Daily Deal Websites What They Need To Change

In the context of Daily Deal websites, I want to know from you:

  • What annoys you?
  • What do you love?

This is your chance to tell the owners of New Zealand’s Daily Deal websites what they need to change to make you happy.  Because annoying customers is never a good idea, and doing more of what customers love is always a great idea.

I’ll start us off:

  • It really annoys me when a daily deal site DEMANDS my email address before I’ve had a chance to see what deals they are offering today!
    • For example: www.Cudo.co.nz
    • I know why they do it, I’m sure statistics show they get more email address this way, but it is still annoying!
  • I love it when an “experiences” daily deal website lists all the deals throughout the country on one page!
    • For example: http://www.grabone.co.nz/home
    • I get to see at a glance what’s in other cities that I might buy for friends/family, and it saves me from manually choosing from a list of cities in a clumsy menu
  • I love it when a new daily deal website launches in my city and they do movie tickets for only $5 🙂

Write your comment below starting with:

  • “It really annoys me when…”
  • “I love it when…”