Why we don't do Groupon or Living Social any more.
Over the years advertising & marketing have changed so much. In the early 90's a single $300.00 ad in the Commercial Appeal could bring in 25 or 30 new faces. When we opened in 2000, we ran a $2500.00 ad in the same location, in the same paper & got ZERO response. Ouch! Over the years we never shied away from trying new media possibilities. One of the first dance studios in the country to successfully use Google Ads. First to do TV ads, including Dancing With The Stars first season. We have tried just about every way to spread the news.
When Groupon, Living Social , and the like came out, we tried them. Friends in Portland got 1500(!!!!) new students in one week! Who wouldn't want that?! Well, it turned out to be a bust; no way to handle them all, bad reviews, and thousands in losses. When we started with them we got a minimal number of new faces in the door, gave 50-60% of the money to Groupon/Living Social, and found the vast majority were not the clients we were hoping for. Since Intro lessons are already loss leaders, this turned into a mess really quickly. We realized we would need to raise the cost to our regular customers to accommodate the extra losses. We chose to avoid Groupon and Living Social, so that we could leave our lesson costs where they were. We have crazy stories from dealing with Groupon/Living Social and some of the people that purchased them.
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DanceSmiths Ballroom Dance Studio