other deal site in general, your profit will be significantly reduced for voucher-based sales. If so, then youre in the right place. Mary concludes she needs 176 customers to return 20 times each (12 purchase) to recoup her costs. 2010) : We received so many email inquiries for help and sharing our spreadsheet that we are finding it hard (time-wise) to offer the help to everyone but if you write a comment or question here on the blog we will be able to answer. Editors Note: If you are interested in learning how to start your own business, click here to take my free 6 day mini course on ecommerce. Heres how we did the math: We used a big spreadsheet but heres a summary: According to a NY Times article a gourmet pastry shop can have margins as high.2. You definitely dont want to sell more of your product or service than you can produce. Be the store that everyone wants to shop at because you are awesome and not because of a coupon. You have to be able to do some basic math to get directional guidance. Okay #10006, method 1 Signing Up 1, go to the, groupon Works site. She runs a Groupon, 6 for 12 worth of pastries!
The businesses that do best are ones that have an easy time driving repeat business from a customer. A good way to prevent this mismatch is to cap the number of Groupons available. We created 2 scenarios, we researched sales numbers, and did some math to forecast the results. For instance, my business is located in Chicago and they can target different areas of the city and suburbs, which is a very large territory, so make sure youre targeting your ideal location. Next, you have to pay Groupon 50 of the purchase price (unless your offer is less than 10 in which case Groupon keeps 100 of the revenue). This happens all the time with cell phone carriers and it really pisses me off. Some of the simplest math can help make smart decisions.