Module 1"Setting Up Your Business Service On Groupon

Always remember that Groupon’s staff will provide you with recommendations to set up your business on Groupon, their suggestions are designed to allow Groupon to generate as much profits as possible off of your business and your hard work, but the beauty in Groupon’s set up is the flexibility it allows business owners to have.


To set up your business Groupon will ask you for 4 pieces of pertinent information:

  • Retail price for option 1

  • Retail price for option 2

  • Name or title for both options your offering 

Keep in mind your retail prices must be listed on your website.

Keep you mind that all the information you initially post on your website will be changed after your Groupon Campaign is up and running and re have received 10 or more positives reviews, which takes a few weeks, if you encourage customers to leave reviews it will take a little less time. The reviews steps will be covered later on, but for now let's continue with setting up your business on Groupon with your retail price, sale price, option 1, and option 2.


For sake of using a real life example to demonstrate exactly how to set up your business structure on Groupon in a way that benefits your  business. Let’s start a residential cleaning service that books 150 clients a week using Groupon as its sales funnel (the process or method.used to get referrals to the buying process that companies lead customers through when purchasing products or service).



Residential Cleaning Company

Retail Price                       $65

When deciding on a retail price to provide to Groupon,you will not base the retail price on the actually prices you are currently charging to your customers. Groupon’s method automatically cuts your prices in half in order to offer them to customers visiting their site, this is why you will use our method, not Groupon’s. The original price of our cleaning services is $26 per hour, but we provided Groupon withe the $65 price point to absorb some of the revenue shock that happens when accepting Groupon customers, more about this later. 

Pay close attention here- listing our cleaning services at $65 means Groupon will place your service on their website for $32.50 per hour, but your business will only receive $16.25 per hour. I’m sure your wondering why in the world would you want to use Groupon just to receive $16.25 when you normally charge $26 per hour. Here’s why, the function of using Groupon for your business is not to make money, but to get hundreds of customer a day to your website where they will be paying full price without having to invest any money into marketing. Your retail price does not have to be $65 as we choose, but it does have to be at a price you can live with at least temporarily until you receive your 10 positive reviews of 4 or 5 stars. Just remember your retail price will be cut in half twice, so you may need to balloon the price quite a bit to ensure you're not giving services away for free. 

More Pricing Examples

Retail Price               Groupon Price                   You Get

$30                             $15                                      $7.50  

$210                           $105                                    $52.50

$9                                $4.50                                   $2.25

Selecting an appropriate retail price for setting your business up on Groupon can be tricky, if you price too high it will be difficult to get your first customers, especially if there are other businesses in your category with great reviews and have a lower sale price.


Remember, the purpose of using Groupon is not about making money, its sole function is be used as a sales funnel that will bring you hundreds of customers a day to your website, and yes this will happen instantly once your business is placed on Groupon, and this course will teach you how to increase profits while using it. 

Going back to the residential cleaning service example of $65 per hour as the starting point, it’s now time to decide on option 1 and 2 of the services that will be offered: 

1st option - 2 hours of regular cleaning

2nd option - 2 hours of regular cleaning and organizing

The first option will have a retail price of $65, the second option will have a retail price of $85. Because these services will be sold by Groupon at deep discounts it's imperative you make the actual service your will give the customer as lite duty as possible, while giving the customer satisfactory services at the same time, Groupon customers are usually not repeat customers, I mean, why should they be, there are millions of deep discounts on Groupon to choose from. That should not be your concern, the concern is the review they will give your business, low overall rating will dismantle this insiders strategy, poor reviews will deter visitors from your website. 

Only send your superior employees to service your Groupon customers, this is the only way to ensure the reviews you receive are good.

Check Your Understanding





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