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Lisa Rothstein

I love Groupon, because it introduces me to establishments, experiences and activities I would not have tried otherwise. I do think it is true that once you've enjoyed something at a discount you're reluctant to pay full price...however, I have gone back to a few places I've tried using Groupon, and I have definitely recommended them to others. So all in all, if it gets new customers in the door, I think it's probably a good strategy, especially for businesses with an off-the-beaten-track location.

Denise Wakeman

I'm a bit of a Groupon addict and I occasionally find a deal I want on Living Social. I always ask the merchant how the promotion is going for them and most are positive about the experience. I've only encountered one merchant who was angry and felt mislead by the Groupon sales person. I think they did not have the right offer for their specific business. That being said, I cannot think of one business that has asked me for my contact info so they can follow up with me. I routinely spend more than the amount of the offer (since I buy mostly restaurant deals) but I'm always shocked that no one ever follows up. That is a major missed opportunity and a reason why these promos don't work for some businesses. Small local businesses have a lot to learn about online marketing and follow up systems. Great post, Dave, thank you!

Rob Northrup

Very timely post, Dave!

I have used Groupon a few times and liked it. The one I use most is and they sell $25 off a $35-50 meal certificates for $2-3 during their frequent discount days. These are basically half off and there are some good places in most cities.

You are so right about the need to get the contact info to follow up and sell later.




Greetings from rural Australia.

I was a shopper before I became an owner of a small business.

Certain stores trained me to never buy at full price because a sale of some sort was always in progress or about to be in progress.

Other stores never had a sale and if I wanted any of their products I had to pay full price.

And I react accordingly in each store to this day. I wait for sales in some stores and know others will never have a sale.

I've carried this over to my business.

I never put anything on sale. Never have specials. And reluctantly put my prices up when necessary. But never reduce my prices. My last price rise was in 2006. And I put some products up by $1 this year.

My profit margins are modest but my signature product, the Fitz Like A Glove Ironing Board Cover, is amongst the most expensive covers in the world.

And one of the most boring products on earth.

But if you have to iron, discerning ironers simply want the best cover that will make their ironing easier.

It solves a problem.

But it's not for everyone.

My market is very small, very loyal and very, very niche. More than 200,000 men and women around the world iron on my cover. But hundreds of millions of people iron every day.

Yet I grow my worldwide business by a significant % every year. My growth rate beats every retailer in Australia.

It's achieved mostly by word of mouth. And with the help of Google. I'm in the top third of every Google page for my search terms.

One reason is because I have products designed by my partner, who is an architect, so they have a point of difference.

And we have a great story to tell about building a world wide business from broke from our remote property in rural Australia. We've learned to tell this story at every opportunity because people love to hear it.

But more so because my world wide customers consider me to be second to none in product quality and customer service. Including to Amazon and Zappos.

My customers receive a double whammy. A brilliant product that does what it says it will do. And loving customer service.

I simply love my customers and they know I'll walk over broken glass to make them happy. And they reward me with the same sentiment.

I don't have a dream run with customers. The odd ones are hard to please. But by walking over broken glass to make them happy, I remove the reason for their displeasure.

Not everyone can run their business like I do. But it works for me.

Sales are a lazy way to do business. There's a smarter and more rewarding way to grow. But it takes energy, desire and a firm commitment to defy the common denominator and travel a different road.

I always love your thought provoking posts. I also use your book on a regular basis as a model to grow my business.

Best wishes and take care,


Carol Jones
Interface Pty Ltd
Designers of The Fitz Like A Gloveā„¢ Ironing Board Cover
Visit my fundraising website at:
Ready my story "How I Became The Ironing Board Cover Lady" at


I've often thought the only way to get customers is through discounts. This is a good reminder of how the role of discounts is to get people in the door. After that, it's all about delivering on the promise.

Great post!

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Great article and good question to ask. there is indeed a significant role when we wanted to sell our products. We really have to focus to the market where we are selling them. Having no consumers at all means that what is the use of selling them. This is maybe hypothetical but nevertheless a very informative post. More power and keep it up.

Sherman Unkefer

Having a market strategy like the ones used by Living Social will surely attract customers but it should be put in mind that Living Social have to take good care of their relationship with their clients because even if they would give 100 dollars to their clients but the clients will not return, they would still end up as the losers in the game.:)

Regan Marye

My friends in Jacksonville are very much into online marketing. They use social sites like Facebook to sell their products. As I see it is, it works very well for the starters and also for a company to reach wider scope of the market. SEO does help to increase your rank but you'd have to start first with branding and social media is the best way to boost it.

Glenn Evans

Sales and discounts draw customers not just closer to your store, but also building loyalty. But now, you cannot only see those tags in stores or malls, now you can also see them on online businesses which is more convenient to the market. Advanced technology made our life easier, that even buying can be done through our fingertips. And marketing can spread and reach the world market in less time.

Macey Prange

It's amazing how online businesses are made. Since it made the life of business owners easier, somehow. Back in the old days, the business market is a battlefield for every business owners. I have to agree with Glenn, it's really amazing how technology has advanced up to this point.

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It is also very important that you have a systematic upsell process once you get them into your establishment. If you don't put them through a sales process, conversion to regular consumer is dismally low.

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