The Wrong Way to Run a Business

[dakwegmo]

There was a groupon offer today for a photographer in Atlanta. She was giving away portrait sessions for $65 including a DVD of high resolution images. The limit was set at 1275 and buyers were given a year to redeem the coupon. Here's a great breakdown of why that was a bad business decision. Groupon Photography Sessions vs. Working @ McDonald’s The Business Lens

And if you enjoy train wrecks, read the comments on the offer page. Dana Dawes Photography Deal of the Day | Groupon Atlanta. It's always good to see true professionals looking out for one another.

[Eastree]

Holy crap! I saw that ad today, too!

I'll have to say that a high volume of sales with that isn't going to be beneficial. But if there could be a limit, then two things:
1. A small limit could help get a photographer's name out there a little better, so that idea might work.
2. If a photographer is going to do something like that, it may be better just to put out some fliers or ads online with a "first 50 people to use code #### get the discounted session!" with probably better results.

Also, did you see how far away from Atlanta she is?! The drive alone, for photo shoots in the city would negate any good the coupons do her!

[candleman]

oh wow!

and stealing other peoples images on top not possibly being able to make a profit.

incredible

OH,
and her website is now suspended.. http://www.danadawesphotography.com/...pendedpage.cgi
tsk tsk

[lonni]

There is an argument for quality vs quantity but look at the kids photographers hitting malls.

10 for the sitting (about 20 minutws) and a free print, i have seen parents go in to get the free print and end up with the $300 to $600 print packs.

Done right that sort of thing works well, shorter sessions, in a studio, no images on disk, or even a handfull of web quality watermarked ones for people to use on facebook might have worked. You could sell enough prints to make a good prfit, and get your name out there.

You do need to be a good sales person though and it would help of you are a good photographer, the prints would sell themselves then.

[Jim Poor]

More on why Groupon is a bad idea: Exposed: Groupon For Small Business No Deal The Final Review - The Retail Doctor

This is part 11 in a series.

[GadgetRick]

While this particular instance didn't seem to work out quite so well, I think things like Groupon can be quite beneficial to growing a business. You have to plan ahead of time and be prepared for a good response. Obviously, you'll need help. The assumption was made that this photog would be the ONLY person working to accomplish this. I also think the assumptions on time are over-blown (for this situation).

As a business person, I look at things like Groupon as a way to grow my customer base. The more customers you have serviced, the more customers you can market your wares to. It's much easier to get business from someone who's already done business with you (and liked your work obviously) than it is to find new customers (although you need to constantly be looking for new customers). Things like Groupon really helps bring in new customers. A percentage of them will never do business with you again--just like other customers you do business with. However, a percentage of them will do business with you again. That's where you make your money.

Things like Groupon are not something I'd think of doing regularly. They're not going to make you rich. But they can help your business grow.

[Jim Poor]

If you read the whole series, it points out pretty well that things like Groupon are actually NOT good ways to bring in new customers. They bring in coupon clippers and bargain hunters who are off to the next bargain rather than becoming a repeat client.

Edit: All that said, I'm no expert on Groupon, but having looked at both sides of it, I think I'll pass.

[Kensun]

I think using a "coupon deal" to bring business wasn't the problem here. The problem (forgetting about the quality of the business or work) was she over sold her services. I could see Something like that working in a very limited number. Say like the fist 20 -25 people or you get a deal when you recomend a freind.

Just my 2 cents.

[dakwegmo]

20-25 would be reasonable, especially for someone trying to add to their portfolio. 1275 though is completely unmanageable by a single photographer, even if she's got assistants. Basically, she would have to do more than three shoots a day, every day for that year in order to get all of them done.

[prince]

Wow!!
I recently saw an ad of a photography studio in Kansas City area for $49 for an hour session. Discount was around 89% I think and actual price was $401. I was shocked and wondered at how they were making any profit. I didn't feel comfortable to do that.

I didn't notice the quantity cap on that offer.

I personally thought may be a 20-25% off may sound good but not that big of a discount.

I agree with Rick. If these media tools are used correctly they are very very effective but again like anything else such as fliers, business cards, discount codes, etc. You have to market to the right people..