Groupon, does what its name implies—creates a group coupon. You post an item at a great price online and if enough consumers sign up to buy it, they all get it at that price. It creates an auction- like urgency to take advantage of your sale because a minimum number of consumers must sign up for the deal to go through.
Alarms, Etc of Tampa, Florida with 3 stores is running its second promotion with the service. The first one was on a Scosche FM modulator iPod kit. Alarms, Etc. offered 25 units at half price. The chain’s Joe Cassity said customers came in the door for weeks afterward saying they heard about the store from Groupon. The store’s first promotion generated an estimated $2,000 in plus business.
Now Cassity is promoting Llumar window tinting for $90 (during the off season for window tinting).
Your store probably won’t make money on the product itself sold on Groupon, but it should get a boost in traffic and exposure.
Cassity says the industry is dogged by the fact that consumers don’t trust our types of stores, but Groupon, a reputable company, gives your store credibility. “It also helps us reach outside our typical demographic.”
“You spend money to advertise with the phone book and hope it reaches people and makes the phone ring. Instead with Groupon, we offset advertising dollars in the form of a discount and KNOW that the phone will ring”, says Cassity, in a press release.
“Advertising and stepping outside of the box is KEY to our industry’s success and I’m happy to assist any other retailer in doing the same thing. Improving the customers’ overall perception of the stereo shops of yester-year versus what we have to offer today is paramount to ensure the continued prosperity of our industry.”