As a licensed esthetician and certified Laser Practitioner who has been working in the spa industry, I have worked with Groupon for a quite long time. When people decide to open up a spa, salon or massage place in the first place, the first thing on top of their head would be Groupon. Groupon started as a website for new customers to get free food from a new restaurant so these restaurants can get their name out there. But then it developed to become a media for people to post all services and products at a really low price, especially the Spa industry. Most of the treatment from spa industry requires more than one visit and depending on the client that it may require them buying more than one package, and this has caused clients continuing purchase packages from different places on Groupon. This has caused most spas can only make money from Groupon now. However, Groupon takes out 50% of the money of what customers paid, and the price on Groupon is already reduced to more than 70% off of the regular price. Owning or renting the machine is a huge investment, and comparing their monthly expense that includes rent, electricity, hourly pay for the technician, to income, they can hardly make any profit. In my opinion, starting marketing through Groupon for spa industry should be abandoned, or these spa places can have a universal client log for Groupon clients so these people don’t shop on Groupon all the time.
Overall, Groupon is definitely a good source of using digital marketing since it has an equal image of lowest price for services. However, Groupon has gone too far that’s out of control and it does not benefit other companies.