There’ve been a lot of discussions on TanToday.com about salons being featured in Groupon (and similar) offers. In case you’re not familiar, these organizations publicize a daily deal for a local vendor. The consumer base tends to be large – people opt in to hear about the specials and are rewarded for referring others to purchase the deals.

These services operate at no-risk to the business owner; if the deal doesn’t attract a predetermined number of participants, it’s simply dismissed. However, as a business owner, there are some things to be aware (or wary?) of:

•Groupon crafts creative text to promote your special. Some salon owners have featured sunless services – and were unpleasantly surprised to find their text portrayed UV tanning in a negative light. If you plan to promote a sunless special, make sure your contract reflects that you have the right to approve the promotional text that will run.

•The concept is still in developmental stages in a lot of areas. If your salon is located an hour’s drive or more from a major metropolitan city, chances are this concept hasn’t taken off in your vicinity yet. Keep an eye out for Groupon knock-offs that may try to bridge the gap in services before the larger companies can properly expand there. Some may work well, others ... not so much.

•Look to negotiate your contract. These companies take a healthy cut of your deal’s revenue – and the payment terms can vary. Don’t take what your account exec tells you at face-value; be aggressive in asking questions and suggesting counter-offers.

•Be flexible in timing. Typically, once you sign on, your special can run in a week or four months down the road. Don’t put all your eggs in one basket, and don’t forget that news of your special may come with little advanced notice.

•Make sure you can support a surge in business. Have a plan for staffing and execution once your deal hits. Some salon owners are selling thousands of specials. If you only have one Formostar and you offer a screaming deal on body wraps, you may alienate more potential new customers than you attract if you can’t properly service them.

I can speak from experience on that one. I purchased a month-long exercise boot camp Groupon back in February. Imagine my surprise to be informed that the soonest they could place me was mid-November! To add insult to injury, the boot camp put me on their e-mail distribution list – and each month I receive news that they’ve got a certain number of openings or new classes available ... for anyone besides those waiting for their Groupon camps to start up.

Groupon and similar service providers can provide an excellent, no-cost opportunity to attract new customers and spike your revenue. Just make sure you do your homework and set up the deal that best suits your salon.

For a great article on how to move new Groupon customers from deal-seekers to loyal customers, visit the link below.

–Karen

Related Article:

Life After Groupon: Retaining New Customers