we decided against groupon after a previous thread that Dereck and Helen posted on - for us to clear the work generated by a deal potentially of around 300 sold would mean we would have to work around 3 months, 6 days a week with no opportunity of upselling or doing regular work - this is only as we're new and will prob be very slow to start with!
In my search for marketing stuff though found these on Hitman from the states
http://advertisingblogg.com/?s=groupon If you read people comments on the blog entries groupon does make sense when done in moderation - the key looks like getting your terms and conditions in order to restrict the amount sold as much as possible eg new customers only, room size etc level of staining like has been mentioned before . Where people were having the opportunity to do extras they were making an average of $498 in some cases £300ish but they might have only been selling between 20-40 deals. Over here it can be anything from 60-360 sold which obviously limits your time & ability to carry out extra work unless they prebook additional stuff when they book their groupon.
Repeat customers is apparently 20-22% and around 10% of deals purchased dont usually get redeemed. There is a thread of disgruntled customers on money saving expert about a firm in Belfast who had sold 369 and were struggling to fit everyone in. If you can manage the workload then it is a sure fire way of getting customers and I agree it is an extension of that form of marketing with the bonus of you actually being able to sell to however many purchase the groupon - the return in theory should be excellent but obviously isnt for everyone, the same as door knocking, yellow pages, flyers etc arent for some.
Even if they didnt want to use you again and wanted to wait for another groupon you would still have their details to send out a reminder / newsletter / special offers or your own voucher etc in a bid to get work from them again for more than the initial discounted rate you did the work for in the first place.
Hope it works out for you Jason,
Vickie