June 28th, 2013
Five Things To Consider On Group Buying Deals
By Tara Berkoski
So, you’ve probably heard of Groupon (If not, you may be living under a rock. We’re not sure how you have Internet and are reading this blog post, but moving on…), but do you know anything about LivingSocial, ScoutMob, Bloomspot? What about SweetJack or GILT?
You may or may not have ever heard of some of these, or maybe even any. Whether or not you THINK you know everything there is to know about each, here are 5 things you should definitely know and keep in mind before making a decision about Group Buying Deals.
Group Buying Deals are useful to restaurants to get new people in to try out your place for the first time. We hope they leave with a full stomach of delicious food and a smile on their face from great service. This will make them want to come back at full price over and over! It can also help get your past diners in again. There are many that have been in, enjoyed and haven’t been back or at least haven’t been back in a while. They just need a little push to remember why they love your place and why they need to come back.
Each site has a different set of people that they target and solicit. Age, sex, budget and other factors are important when choosing the right Group Buying Deal for your restaurant. Also, each one has a list of subscribers they send the deal out to and each has a different amount of subscribers from various location ranges. You may want a smaller list to get a few people in for a deal and you don’t have that many seats to fill, or you may want to blast it out to as many people as possible because you’ll always have room for more business.
There is no direct cost associated with Group Buying Deals, which makes it a great way to bring in business! What you are giving away is food and seats for full-price paying customers. Typically, you will divide the profit 50-50 with the site. You can bargain for a better split, but some are tougher to budge than others. Also, remember that there are ways to upsell diners above and beyond the specified offer they pre-purchased.
You have a certain level of control on what limitations each deal includes. You may opt to not include alcohol sales, offer for dinner only, not allow use on takeout, etc. Be careful what restrictions you set. Make sure you think of everything, because once the deal is out there is no turning back. Also, don’t be too strict, as it will turn people off from purchasing the deal. Most do not offer the option to pick which days or times you can use the deal… but you CAN require reservations and push the purchasers to a different reservation number that will allow you to choose when to offer them a table.
5. Additional Benefits
Some programs offer radio ads. Others offer a specific special instead of a percentage off, which gives you the opportunity to showcase specific dishes, items or products. See what extra advantages each Group Buying Deal has before making your decision.
If you still are unsure which is right for you, have any questions or need someone to handle this for you… we’re here to help. Ask your Account Executive for more information and if you do not have one yet, give us a call to see what else we can offer your business to help get folks in seats!