My pilates studio is about to do a Groupon. Has your studio done it, and is it worth it?

I have had a really difficult time having any of them actually USE me or my classes on their sites: they have me sign the contract, establish parameters where they take 50-70% of the "deal" (I get less than $10 for a $175 class offering) and then they don't ever even list the class at Groupon or one of the several deal sites.

It's incredibly frustrating and I don't plan on repeating my experiences.

Also be aware, Living Social has told me that they aren't having as much success with fitness offerings so they are taking a bigger chunk (I think more than 60%) "to make it profitable"... for them! They also wouldn't list the class for more than $30 ($145 discount), then they take 60% so I would offer a month of daily classes and receive $12. There are a ton of classes in the area so I would not expect repeat customers, regardless of the quality of my class.

As you can tell I'm fairly bitter about my experiences. If I sign a contract I don't like being stuck in the trash for months and months! Good luck with your venture!!

I did it, but I'm not a studio owner. I worked with Groupon to offer a deal for my workout DVDs as a bundle set for a bargain price. I slashed retail price by 50%, then of the price that the deal was advertised for, Groupon kept 50%, and I received 50%. However, as far as claiming sales tax goes, you have to claim sales tax on the dollar amount that the end purchaser paid, not the dollar amount that you received. (The sales tax burden falls on the vendor, not Groupon).

I had a wonderful experience working with Groupon. They were very well organized, had a fantastic webinar, and had a terrific sales associate that held my hand and answered all of my questions along the way.

If you go forward with offering a Groupon deal at your pilates studio, just be sure that you look at it as what it is: a marketing tactic. Don't expect to make money off of this, but instead weigh this option as opposed to other means of marketing. I had done newspaper advertising in the past that proved to be very expensive with very little return on investment. With Groupon, yes, I cut my price significantly, then took a significant cut out of the revenue, but I was able to reach a very large market and receive some returning customers, Facebook and Twitter followers, and (quite frankly) some fans that will follow me to the ends of the earth!
Groupon has an extensive pipeline, so not every business that wants to be featured for a daily deal will be featured. If you ask me, they are a great company to do business with. It was an honor and a privilege to be featured as a Groupon deal in some areas (and side deal in others), and I would highly recommend working with them as a means to market your business.

It is a loss liter service that you offer. It is great marketing. the problem is that the new client only wants to pay the deal price versus the value so they wait for a new deal. So only do it for exposure not because you need to build capital or sales

I've done research on this and most companies say that they lost a lot of money with Groupon. Check out this article: http://www.retaildoc.com/blog/groupon-worst-marketing-business/

We did Living Social. We got a pretty good response. You just have to figure out a way to keep the clients after they buy the deal.

I have mixed feelings on discounting services. I feel that it changes the perceived value of the service. It also may not give you the quality lead you are trying to attract to your business. It really depends on the approach. One approach is looking at it as creating another venue for word of mouth advertising. Meaning, if a lead comes in and doesn't purchase but had a wonderful experience they will share that with other people. That is valuable marketing. But...if they did not have a good experience the repercussions can be costly. I have participated in discounting a few times, my goal is to keep the studio visible in the consumer's eye. The ad tells something different about the studio. They may not purchase a coupon but they will know we exist.

I personally don't offer Groupons but the gym that I contract with does for a few services. I've been told that it really does compromise the quality of the services as many people will only use your company as it offers a substantial discount, but are not willing to pay your usually fees.

You're prices are almost cut in half by the time the groupon goes into effect, but is your staff really ready to eat the difference as it mostly will effect them?

I own a pilates equipment studio and have used Social living for 2 privates, new clients only, and Groupon for Intro group equipment classes only (min 4 max 7 people per class), new clinets only, at the 50 % off rate. Our groupon did work becasue a current client bought it as a gift for mom, hubby and friend. 2 of the 3 redeemed and both have continued at regular price. The Social living group classes:, only 2 out of 13 continued and of course i lost money on paying instructors. wouldn't do again. Actually I'm glad to see it wasn't just my pilates business that didn't do well and others felt the same.
One thing to keep in mind...the Groupon /S.L. companies say the typical client is purchasing to try you out at a discount, not just coupon shopping...not sure if that is true. We did get some calls after the offer was over for our services ...good exposure. If I place an ad in the local paper and get no response for $450 - $500 a month I have spent money with no results. The groupon you do get some money back for your effort. I find with regular ads in the paper, the 2 times in 10 years I offered a trial discount, I maybe sold one package...so discounts arent good to do any way....McDoanlds owners don't like all the discounts either ( my husband was a franchise owner).

I would never do a Groupon.

No offense intended Jennifer, however, I am moved to ask is Joseph Pilates would discount the value of pilates.

He was successful because he understood his craft. He offered value that his clients recognized, appreciated and realized it was worth the investment.

I wish you success.