When putting together an offer to be made available on a deals site you have to make sure that it is manageable by not only your bottom line but by your staff and the volume capability of your over all business.
When looking at what is manageable you first need to look at the true cost of the offer you want to make. When talking about true cost you need to look at the cost of any products, labor of staff any utilities involved and so on. You do not want to offer a product for $5 that costs you $4 as you are going to lose a percentage of that $4 offering price to the deal site. Lets look at a 25% cost to the deal site. That will leave you with only $3.75 income which is an immediate $0.25 loss!
So make sure that you are still coming out ahead of the initial cost of at least the product.
To help improve your bottom line of dollars coming in, you need to look at up selling or accompaniments.
Let us look at a burger as an offered product for a deal price that you can live with. Now what can help you increase the dollars that are spent in your business when a deal user comes in and buys that burger with a deal voucher? How about fries, gravy, a soda or even a dessert? Or even better, why not all of these!
You will also need to look at the cost of increased staffing and the extra inventory you will need to keep up with the increased volume. Now these two items alone have been the largest contributors to breaking a business and resulting in a very unsuccessful deal campaign. As most deal sites collect the full deal price and release your share of the sales weeks and sometimes months later.
This is why the Local Touch Media deal site Price Cheetahs uses redemption pricing. This creates immediate cash flow for your business.
When you run a deal and have additional items that could be sold to go with the deal offered product, you need to educate your staff. They need to be able to sell customers on the benefits, greatness or perfection of pairing or adding on the up sell items.
Your staff are your best bet for selling more. If all you have are order takers they will never make your business the money it can make. Plus you need to put on your strongest and friendliest staff when offering a deal on a deals site.
As you will experience an increase of customers coming through your doors you need to make sure you and your staff can handle the increase in business volume. If you suddenly increase your business volume by 100 – 400% during busy times and the customers experience goes badly due to being rushed, not enough attention, not made to feel welcome and the list can go on, your business will ultimately suffer in the long run. This will be due to people sharing their negative experience.
A simple precautionary step to help prevent such disasters is to use time of day limitations. This practice will allow you to schedule your staff accordingly, as you know when you will get your influx of deal vouchers. Also you can use this to force the increased volume of business to times of the day that are normally slower so as not to take away from the earnings your are going to get during peak times anyway. Thus increasing your overall take for the day.
Planning is key to anything in your business. So make sure that you plan an offer out really well. If you take the time to do this you will always have a successful deal campaign.