The Pros and Cons of Using Groupon for Your Business
Are you looking for a fresh way to advertise your business? Are you hoping to connect with local customers that are more than willing to check out your company? If you answered yes to both these questions, experimenting with Groupon may be right up your alley.
If you are going to use Groupon, however, you need to understand both the pros and cons. While this is a great way to connect with your audience, you are slashing prices to do so. Is that something you are comfortable with?
Groupon Pros for Small Businesses
1. Attracts a lot of customers. The primary benefit of Groupon is the number of customers it will bring to your business. You have the opportunity to attract buyers through lower prices, which is something many people are looking for in today's day and age.
2. Great way to advertise your business. With a Groupon deal, you can get your product or service in front of people who are unfamiliar with what your business has to offer. It is your hope that they like what they see and will come back for more in the future.
3. Helps build customer relationships. If you play your cards right, you can use Groupon to build a long-term relationship, as opposed to a customer visiting once and never coming back again.
Groupon Cons for Small Businesses
1. An influx of traffic. Can you handle the traffic that a Groupon deal may bring to your business? If not, you may find it a challenge to keep up with demand.
2. Groupon attracts bargain buyers. Since most Groupon users are made up of people who are looking for nothing more than a way to save money, many have no desire to purchase anything in addition to the value of the coupon.
3. Groupon deals are not always profitable. In addition to the deal you are offering, such as a half price service, Groupon is going to take their share of what you sell. In the end, you may find that you did a lot of work but did not make any money.
There are small businesses that have successfully used Groupon as well as those that have tried and failed. Now that you understand the pros and cons, you can decide if this is right for your business.