Today we’re going to explain to you how to set up a Groupon deal for your tutor business.
Step 1 – Go to https://www.groupon.com/ Scroll to the bottom of the page and click on Run a Groupon deal.
Step 2 – click the local image and fill out the form. Groupon will contact you with details about how to set up your campaign.
That is pretty simple. Before I go on, there are horror stories about using Groupon and there are some people that tell you that doing it can be bad for business. Here is one good explanation of that – http://mywifequitherjob.com/should-you-use-groupon-for-your-small-business/
So why would I say that you should test out a Groupon. So lets pretend for a minute.
Just to make the numbers easier we’ll pretend that you’re going to sell ten $10 tutor sessions for $5. So basically this is letting the groupon folks try it for free.
So you sell 10 for $5 and give Groupon half of it. So you’ve made $2.50 x 10 or $25.
Let’s say that out of those 10 new one session customers that you sell 2 of them your normal tutoring sessions.
$10 x 2 (number of customers) x 4 (months in the semester) x 8 sessions a month = $640.00 money for the semester. If you retain the customer for more than a semester then you’ve made more money.
A few things to remember –
- Make sure to check out the costs of doing your offer first.
- Don’t say you can fulfill more than you can. If you can add ten new tutor slots for a week or a month or whatever then do that. Don’t say you’ll sell 20 and then have to scramble to get the tutors.
- Test it and let us know how you did. I’m trying to figure out a way to do it for my businesses. If you offer something that is sold and no one ever uses again, then I can definitely see how you could lose money. Tutors generally have long term relationships with their customers. This could also be a good idea for people that sell complimentary things – like say pillows and sheets. You could Groupon the pillows, then try to sell them sheets.
Enjoy your week.