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You will be surprised by the business that benefited most from Groupon Singapore

If you go by the recent deals results on Groupon Singapore, those who will potentially benefit most isn’t going to the restaurateur or the retail outlet or even that beauty spa. 

The top deal on Groupon Singapore was from aircon servicing company, Refreshing Cool, that offered SGD12 to service each wall mounted air conditioning unit. This was 60% off the original price of SGD30 per air conditioning unit.

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The offer was so popular that Groupon that 1087 Groupon users bought it. In comparison, the 2nd most popular deal only sold 296 groupons. A Japanese restaurant only sold 69 groupons.

It seems Singaporeans are after discounts which offer manpower services around the house as compared to F&B discounts or Spa discounts.

The discount would have cost Refreshing Cool about SGD26,088 (SGD19,566 absorbed for the discount and SGD6522 estimated commission to Groupon Singapore), Refreshing Cool probably got more customers referrals than putting an ad in The Straits Times classified ad section or a small little section in Yellow Pages Singapore.

Unfortunately, this means the success of Groupon within this service industry would further erode revenues from these traditional media powerhous.

For Refreshing Cool, the opportunity cost of not spending this amount would possibly be staff sitting in the office waiting for the phone to ring.

And once the customer is satisfied with Refreshing Cool services, he/she would most likely call the same company again. The customer is most likely call after the three months validity of groupon as you don’t need to service your air conditioning units that often. If you had too, it would be an indication that Refreshing Cool didn’t do a good job.

So if you are plumber, electrician or even offer part time housekeeping services, going on a Groupon campaign would probably get you more leads than any form of advertising.

Maybe Singapore most infamous professional eyebrow plucker, Steven Lim, should consider a Groupon campaign.

On the other side of the spectrum, the worst performer on Groupon Singapore was for a SGD25 Golf Introductory Clinic by PGA Instructor for 90mins at Seletar Country Club (Worth $58) which only saw 4 sold.

Comments

Mr B said…
Where did you get the breakdown of revenue from? Are they reliable?
Aaron Koh said…
It is an estimation based on other reports that Groupon charges a 50% commission off the final sale price.

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