If you’re going to use Groupon or a similar platform, be aware that all you are doing is dropping a level.

Price-wise is what I am referring to of course.

You’re doing this so you can reach more people.

So more people more easily say ‘yes’.

So more people can experience what you have to offer.


But the message here for your business is that, if you do drop a level and sacrifice profit, it is just stupid if this is the full extent of your reach/business growth strategy.

I will illustrate.


Lisa took a look at the open, non-Groupon(esque) marketplace in an attempt to decide where to go for a hair somethingorother.

There were various factors that influenced the buying decision.



Brand reputation.



Some of the people that Lisa looked at also chose to venture into the world of Groupon.

Here’s what they did in this new place…

They lowered their price.

That’s it.

Bugger all else.

Which is just fucking stupid.

All they did was create another level of ‘things’ to choose from, all with zero narrative about why they should be chosen over the competition.

Apart from price.

So they had differentiated themselves in one way I suppose.

They differentiated themselves from the ones that weren’t dumb enough to just sacrifice margin.


All I am saying is, if you are going to drop a level – think!

Why should people chose you over the competition that now exists at this lower level?

You are not the only hairdresser on Groupon.

The market does not want a haircut from anyone so daft that they think simply dropping the price is a shortcut to long term success and an ongoing relationship.

They won’t be able to come back soon anyway.

Because you’ll be out of business.


As I mentioned in my earlier Groupon post, silly price wars are – ultimately – good for no one.

Build your brand.

Make me love you.

That way you’ll matter more and last longer.

And if you don’t know how to do this – find someone that does.

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