Another MI B&B on Groupon

[cherry64]

http://www.groupon.com/deals/ludington-house-bed-and-breakfast?c=dnb&p=1
I have been to this B&B and loved the place and the owners.
Just posting it so people can see what is being offered as an FYI.

 

[Alibi Ike]

I don't get how this works for the owner. So far, she's 'made' less than $500 on 11 room nights. Someone else told me about another place that sold a few hundred of these and got $20,000. But that's on rooms that would have fetched $80,000 at full price. And with that many rooms sold, every weekend you have to have at least one night where all the rooms are paying 25% of what you could have made. How is this sustainable in the long run?

 

[toddburme]

My understanding is that only about 25% ever actually use it. Groupon pays only on the ones used so Groupon is making a killing(I know this is the case on the groupon you make your self in their interface.). But anyways so they are going to lose on about 3 guest rooms or so. BUT their B&B was exposed to thousands of potential customers who when looking for a B&B later might or might not remember who they were. So hopefully they got tons of exposure for $500.00.
The groupon you can make yourself in their interface only charges 30% of the value versus the 50% from a normal one and I do not know the other differences.

 

[egoodell]

My understanding is that only about 25% ever actually use it. Groupon pays only on the ones used so Groupon is making a killing(I know this is the case on the groupon you make your self in their interface.). But anyways so they are going to lose on about 3 guest rooms or so. BUT their B&B was exposed to thousands of potential customers who when looking for a B&B later might or might not remember who they were. So hopefully they got tons of exposure for $500.00.
The groupon you can make yourself in their interface only charges 30% of the value versus the 50% from a normal one and I do not know the other differences..

My understanding is that only about 25% ever actually use it. Groupon pays only on the ones used so Groupon is making a killing(I know this is the case on the groupon you make your self in their interface.). But anyways so they are going to lose on about 3 guest rooms or so. BUT their B&B was exposed to thousands of potential customers who when looking for a B&B later might or might not remember who they were. So hopefully they got tons of exposure for $500.00.
The groupon you can make yourself in their interface only charges 30% of the value versus the 50% from a normal one and I do not know the other differences.

I have also heard that for those that don't plan to use their Groupon, there is a new site where they can sell it so that may cause a higher percentage to be used. The problem for me would be it has to be a discount, and then you only receive 50% of the price. I can't afford that for sure and I'm also afraid that more people will want discounts if they see my business up as a Groupon.
RIki

 

[egoodell]

I don't get how this works for the owner. So far, she's 'made' less than $500 on 11 room nights. Someone else told me about another place that sold a few hundred of these and got $20,000. But that's on rooms that would have fetched $80,000 at full price. And with that many rooms sold, every weekend you have to have at least one night where all the rooms are paying 25% of what you could have made. How is this sustainable in the long run?.

I don't get how this works for the owner. So far, she's 'made' less than $500 on 11 room nights. Someone else told me about another place that sold a few hundred of these and got $20,000. But that's on rooms that would have fetched $80,000 at full price. And with that many rooms sold, every weekend you have to have at least one night where all the rooms are paying 25% of what you could have made. How is this sustainable in the long run?

Here it worked for an owner whose B&B is about a 20 minute drive to town. She is able to sell rooms that otherwise would have been empty. The discount made the guests opt for a location that is usually secondary. So this is great for those who are not in the best location.
Riki

 

[toddburme]

I don't get how this works for the owner. So far, she's 'made' less than $500 on 11 room nights. Someone else told me about another place that sold a few hundred of these and got $20,000. But that's on rooms that would have fetched $80,000 at full price. And with that many rooms sold, every weekend you have to have at least one night where all the rooms are paying 25% of what you could have made. How is this sustainable in the long run?.

I don't get how this works for the owner. So far, she's 'made' less than $500 on 11 room nights. Someone else told me about another place that sold a few hundred of these and got $20,000. But that's on rooms that would have fetched $80,000 at full price. And with that many rooms sold, every weekend you have to have at least one night where all the rooms are paying 25% of what you could have made. How is this sustainable in the long run?

Here it worked for an owner whose B&B is about a 20 minute drive to town. She is able to sell rooms that otherwise would have been empty. The discount made the guests opt for a location that is usually secondary. So this is great for those who are not in the best location.
Riki
.

Here it worked for an owner whose B&B is about a 20 minute drive to town. She is able to sell rooms that otherwise would have been empty. The discount made the guests opt for a location that is usually secondary. So this is great for those who are not in the best location.
Riki

Selling rooms at 25% of the normal rate can't be profitable. Unless it is a hobby B&B, this is not a profit center for a normal B&B.

 

[Alibi Ike]

My understanding is that only about 25% ever actually use it. Groupon pays only on the ones used so Groupon is making a killing(I know this is the case on the groupon you make your self in their interface.). But anyways so they are going to lose on about 3 guest rooms or so. BUT their B&B was exposed to thousands of potential customers who when looking for a B&B later might or might not remember who they were. So hopefully they got tons of exposure for $500.00.
The groupon you can make yourself in their interface only charges 30% of the value versus the 50% from a normal one and I do not know the other differences..

I think they used to pay all of them. That was the impression I got from talking to them last week. She said when the promo was over they would send payment. That may have meant when the coupon expired tho. Which then means you don't get paid up front and have to wait for payment.

 

[toddburme]

My understanding is that only about 25% ever actually use it. Groupon pays only on the ones used so Groupon is making a killing(I know this is the case on the groupon you make your self in their interface.). But anyways so they are going to lose on about 3 guest rooms or so. BUT their B&B was exposed to thousands of potential customers who when looking for a B&B later might or might not remember who they were. So hopefully they got tons of exposure for $500.00.
The groupon you can make yourself in their interface only charges 30% of the value versus the 50% from a normal one and I do not know the other differences..

I think they used to pay all of them. That was the impression I got from talking to them last week. She said when the promo was over they would send payment. That may have meant when the coupon expired tho. Which then means you don't get paid up front and have to wait for payment.
.

I think they used to pay all of them. That was the impression I got from talking to them last week. She said when the promo was over they would send payment. That may have meant when the coupon expired tho. Which then means you don't get paid up front and have to wait for payment.

Cool thanks for that info. That is how I understood it worked. In that case I can see how you can come out.

 

[Alibi Ike]

My understanding is that only about 25% ever actually use it. Groupon pays only on the ones used so Groupon is making a killing(I know this is the case on the groupon you make your self in their interface.). But anyways so they are going to lose on about 3 guest rooms or so. BUT their B&B was exposed to thousands of potential customers who when looking for a B&B later might or might not remember who they were. So hopefully they got tons of exposure for $500.00.
The groupon you can make yourself in their interface only charges 30% of the value versus the 50% from a normal one and I do not know the other differences..

I think they used to pay all of them. That was the impression I got from talking to them last week. She said when the promo was over they would send payment. That may have meant when the coupon expired tho. Which then means you don't get paid up front and have to wait for payment.
.

I think they used to pay all of them. That was the impression I got from talking to them last week. She said when the promo was over they would send payment. That may have meant when the coupon expired tho. Which then means you don't get paid up front and have to wait for payment.

Cool thanks for that info. That is how I understood it worked. In that case I can see how you can come out.
.

I think they used to pay all of them. That was the impression I got from talking to them last week. She said when the promo was over they would send payment. That may have meant when the coupon expired tho. Which then means you don't get paid up front and have to wait for payment.

Cool thanks for that info. That is how I understood it worked. In that case I can see how you can come out.

Always best to get it right from the horse's mouth, tho. So if you're interested call them!

 

[gillumhouse]

My understanding is that only about 25% ever actually use it. Groupon pays only on the ones used so Groupon is making a killing(I know this is the case on the groupon you make your self in their interface.). But anyways so they are going to lose on about 3 guest rooms or so. BUT their B&B was exposed to thousands of potential customers who when looking for a B&B later might or might not remember who they were. So hopefully they got tons of exposure for $500.00.
The groupon you can make yourself in their interface only charges 30% of the value versus the 50% from a normal one and I do not know the other differences..

From what I was hearing at the PAII Forum, Living Social has a beter deal for us.

 

[cherry64]

My understanding is that only about 25% ever actually use it. Groupon pays only on the ones used so Groupon is making a killing(I know this is the case on the groupon you make your self in their interface.). But anyways so they are going to lose on about 3 guest rooms or so. BUT their B&B was exposed to thousands of potential customers who when looking for a B&B later might or might not remember who they were. So hopefully they got tons of exposure for $500.00.
The groupon you can make yourself in their interface only charges 30% of the value versus the 50% from a normal one and I do not know the other differences..

From what I was hearing at the PAII Forum, Living Social has a beter deal for us.
.

From what I was hearing at the PAII Forum, Living Social has a beter deal for us.

One of the things I like about Living Social is that they have an "Escapes" Tab, which says affordable vacations near you. I see B&B's on there too.
http://escapes.livingsocial.com/deals

 

[JBloggs]

Living Social will come and and do an inspection, ie make sure what they are selling is accurate and upscale. I appreciate that (as a shopper/consumer).

 

[toddburme]

My understanding is that only about 25% ever actually use it. Groupon pays only on the ones used so Groupon is making a killing(I know this is the case on the groupon you make your self in their interface.). But anyways so they are going to lose on about 3 guest rooms or so. BUT their B&B was exposed to thousands of potential customers who when looking for a B&B later might or might not remember who they were. So hopefully they got tons of exposure for $500.00.
The groupon you can make yourself in their interface only charges 30% of the value versus the 50% from a normal one and I do not know the other differences..

I think they used to pay all of them. That was the impression I got from talking to them last week. She said when the promo was over they would send payment. That may have meant when the coupon expired tho. Which then means you don't get paid up front and have to wait for payment.
.

I think they used to pay all of them. That was the impression I got from talking to them last week. She said when the promo was over they would send payment. That may have meant when the coupon expired tho. Which then means you don't get paid up front and have to wait for payment.

Cool thanks for that info. That is how I understood it worked. In that case I can see how you can come out.
.

I think they used to pay all of them. That was the impression I got from talking to them last week. She said when the promo was over they would send payment. That may have meant when the coupon expired tho. Which then means you don't get paid up front and have to wait for payment.

Cool thanks for that info. That is how I understood it worked. In that case I can see how you can come out.

Always best to get it right from the horse's mouth, tho. So if you're interested call them!
.

I think they used to pay all of them. That was the impression I got from talking to them last week. She said when the promo was over they would send payment. That may have meant when the coupon expired tho. Which then means you don't get paid up front and have to wait for payment.

Cool thanks for that info. That is how I understood it worked. In that case I can see how you can come out.

Always best to get it right from the horse's mouth, tho. So if you're interested call them!

We have and I have emailed etc. That is why i was inside and noticed I could set it up myself as we are not seeing the love from them ( they don't return our calls or emails).

 

[Copperhead]

My understanding is that only about 25% ever actually use it. Groupon pays only on the ones used so Groupon is making a killing(I know this is the case on the groupon you make your self in their interface.). But anyways so they are going to lose on about 3 guest rooms or so. BUT their B&B was exposed to thousands of potential customers who when looking for a B&B later might or might not remember who they were. So hopefully they got tons of exposure for $500.00.
The groupon you can make yourself in their interface only charges 30% of the value versus the 50% from a normal one and I do not know the other differences..

I think they used to pay all of them. That was the impression I got from talking to them last week. She said when the promo was over they would send payment. That may have meant when the coupon expired tho. Which then means you don't get paid up front and have to wait for payment.
.

I think they used to pay all of them. That was the impression I got from talking to them last week. She said when the promo was over they would send payment. That may have meant when the coupon expired tho. Which then means you don't get paid up front and have to wait for payment.

Yes, what they told me is they pay you in installments - 1/3 every month of what was SOLD not what was used. It was my understanding that you must discount your room at least 50%, then you get 50% of the amount they sold. Call them to get the scoop from the source.
Living Social has a special deal with B&B's and takes 30%. They also pay you ALL your $ right after the sale.

 

[greyswan]

we received 3 pmts over 3 months on the groupons sold. The deal had to be at least 50% discount. and we received half of that. while we sold only 90 rooms the exposure we got was huge. We looked at it as advertising rather than a loss.
adding: we contacted LivingSocial but were rejected - not sure why but I'm guessing because we're not an upscale inn nor do we offer packages that would fit what they've done in the past.

 

[JBloggs]

If you use groupon you sign an agreement not to use any other of these type companies. (FYI)

 

[Copperhead]

If you use groupon you sign an agreement not to use any other of these type companies. (FYI).

If you use groupon you sign an agreement not to use any other of these type companies. (FYI)

Really! I know of one that has used both repeatedly.

 

[greyswan]

hmmmm...need to drag out my contract

 

[Bigbid]

A b&b here in my town sold a little over 200 rooms on Living Social in a large city about 250 miles from us. That surprised me so many bought it from that far away. 50% off room and 30% off remaining to Living Social. So she got about $42.00 for every $120 dollars, that is her room average. She did get all of the money up front. She said she was not getting her normal B&B clientele and was having alot of problems with some guests. Sneaking in pets and so on. She does not think she would do it again and said she did not think she would get many return guests at full price because they are bargain hunters. Who knows?

 

[domsmom]

My friend and I (she also has a b&b) in our city, are thankful for this thread. We were discussing how the groupon/living social works and to read everyone else's experience is great. Thank you.