Last week we showed salon owners how to choose between daily deals based on the type of client you want to attract. This week will unveil which daily deal is the greatest financial investment. The goal of every business is to make money. However, when multiple businesses come together things get complicated. Your salon will be equipped to choose the right daily deal site and increase revenue after reading these insightful tips.
The main monetary difference between Groupon and Signpost is how your salon receives the profit from the deal. For salon owners that are trying daily deal promotions for the first time then choosing Groupon would be more beneficial. Tom Cheredar of venturebeat.com explains the distinction between the two sites. He states, “Signpost’s model works for all parties involved because it charges its local business clients a $99 monthly fee rather than taking half of every deal transaction the way Groupon or LivingSocial do.” There is more risk involved when using Signpost because they receive $99 regardless of whether the deal is a success with clients.
However, when your deal generates popularity within the community, then switching to Signpost is better because you keep all the profits. Cheredar adds, “A growing number of critics have branded Groupon as bad for small businesses, because Groupon employees are paid on commission — meaning better deals are more lucrative to the employee, regardless of whether that deal is good for the small business.” Therefore if you have a previously proven successful promotion, then adopting the Signpost approach gives your salon the maximum revenue since you’ll receive 100% of the profits.
No one wants to waste money, but creating a Groupon deal has the potential to adversely affect your salon’s reputation. Recent studies have shown the downsides of small businesses using Groupon deals. Spaboomblog.com urges salon owners to think twice before using Groupon. They explain, “Maintaining healthy consumer reviews has never been more important. Groupon can reduce your Yelp rating and have a negative impact on your business.” There are potential risks with each site, but it appears that Signpost is the lesser of two evils.
For more information on another business investing in Signpost, visit techcrunch.com.
If you’ve used any daily deal sites, how did it/they work out for you? Tell us the good, bad and ugly!
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