Is social couponing really worth it?

One of the things that I really love is finding a good bargain.

I am not really an "extreme couponer" or someone that takes a lot of time out persusing through stores and other business establishments. Thanks to one of the latest internet trends, I don't have to.

Have you ever heard of LivingSocial? How about Groupon? These are the two most popular examples of social-coupon sites, websites that offer daily and "limited time only deals" to website viewers.  The deals offer discounted prices for browsers who pre-purchase a coupon. These websites can be great for small businsess, increasing visibility and broadening their customer base by bringing in brand new people.

Many restaurants, private boutiques, spas, and salons participate in offering social coupons on websites such as Groupon but--- is it really worth it?

Although Groupon may seem like a great way to get business and make money, there are some significant risks involved with committing to become a Groupon vendor. I recently read an article in Entreperneur magazine by Sarah Jacobsson Purewal, that outlined a number of "nightmares" associated with doing a deal on a site like Groupon and it mentioned branding.

When you are offering a high-end service, doing social-couponing deal can be bad branding and only serve to devalue what you provide on a normal basis to your clients. Most "bargain hunters" are not likely to come back and pay for a service that they intially recieved at half-price and the "one-time-offer" may cheapen the value of the provided services in the eyes of repeat customers.

All in all, Groupon may seem like a good idea at first but, there are a number of things to consider before committing to participate and my conclusion is that it isn't profitable for salons that are looking to gain repeat and loyal clients.

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