JULY 12th 2010 UPDATE:
I’m in the final month of my offer and wanted to add a couple points,
* I think you can expect a good number of people (maybe a third) want to schedule a session in the last month of the offer. I think I will end up doing 30ish groupon sessions in July before my 8/1 expiration. And that doesn’t include my non-groupon sessions. I am averaging 3 sessions weekend day in July and almost 1 on weekdays.
* You can choose to extend the offer but I’m trying not to. I’m one for being fair and I figure that extending the deadline isn’t fair to everyone that planned ahead.
* At this point my sales process is breaking down – I don’t have the time/energy to meet with all those clients. Having a stronger understanding of products (albums, picture boxes, cards, etc.) would have served me well. Especially products that don’t require a large amount of my time. Not entirely sure I could manage if I sold an album to a large percentage of these clients.
* Figure out what your are going to do post groupon – this is huge and and I think potentially problematic. I’ve been living in the groupon world for 8 months and I’m not entirely sure what it will be like when those calls end. Fortunately I’ve done a fair amount of SEO work so I rank in the first page or two on most searches regarding San Francisco family, child, engagement and portrait photography. But I’m clear that I will definitely have the urge to coast once this is done. I’ll need some time to catch my breath but I can’t rest too long if I want to take advantage of the momentum I’ve built.
JULY 2011 Update
So it’s been a year since I’ve finished my groupon. In that time I’ve discussed my experience with a lot of photographers and I thought I would share a few more of my thought:
* People are generally loyal to Groupon and not the vendor – This holds true with every vendor I talk to that ran a daily deal. The numbers for repeat business are really, really low. So you have to think of this as a one time opportunity to sell to a lot of people rather then a chance to get repeat clients.
* Pertaining to the point above – you have to nail in your sales process. Not only to increase your sales but to really impress the clients. Having a large canvas in the house will have clients thinking about you way more then any number of 8×10 or smaller prints. Best way to sell large prints is through live (in home or at a studio) presentations. I use Proselect and while it takes more time my average sale has gone up 4 or 5 times and my clients are so very happy when they see the larger print or canvas. Honestly I don’t know how I could have met so many clients at their homes but I know I would have made more money and had a lot more happy clients if I had tried.
* Manage your numbers – As I wrote above, processes are key. One process that I wish I had addressed long ago was my pricing strategy. I didn’t charge enough for may things and more importantly I didn’t have a real process for determining the price for my packages or products. It was a lot of “what if i do this or what if I do that?” That was time and energy wasted and money lost. What I didn’t appreciate was that there is a science to pricing and that understanding what works and doesn’t work will same you tons of time, give you confidence as a business person, make your clients happier and make you more money. Two people that have broken this down are:
- Tofurious and his Creative Pricing and Packaging for Photographers (affiliate link) - $65. Great read that will help you create straight forward packages.
- Jamie Swanson at The Modern Tog and her Photographer’s Pricing Guide Workbook (affilliate link) - $89. She has a great series of posts that breaks down pricing and creating a strong fiscal foundation for your business. The workbook is an excel file that makes everything quite simple.
I’m sure there are other resources as well (leave your favorites in the comments) but having read these two has helped me better manage my numbers, wow clients and make more money. Wish I had read these last year.
I hope this helps answer any of your questions and good luck.
Groupon Consulting
I’m offering to do 1 hour groupon consulting sessions for Photographers in any stage of Groupon Process:
- Should I /Shouldn’t I
- I’ve signed up – now what do I do
- Help – I’m drowning
- Maximizing sales
Sessions are $100 each and done over the phone. We’ll talk about what needs to be done to maximize this opportunity and for you to stay sane. If you are interested, please contact me to schedule a call.
Joey
3/16/11 – just posted another Groupon Observation – intended to help photographers manage client concerns.
Great read. Thanks!
I found this extremely helpful as I recently just relocated from NY to Phoenix and was considering doing this.
Thanks for writing this, it help me a great deal in my research into using Groupon.
I will try this method, but like you said I will make sure I am ready for the scheduling/proof work first!
Hi Joey,
I know you mentioned you can’t speak about the terms of the deal with GroupOn as it refers to the contract. Do you have the freedom to speak about the sales process with GroupOn? Did you reach out to GroupOn to set this up or did them come to you? I would guess you had a interview process that talked about the specifics of the deal, your objectives, and how you want your brand represented?
I’m helping a friend who is an aspiring photographer, and as a Internet marketing practitioner myself, I wanted to get some first person details before I recommend. I know these grouping buying deals have their advantages & disadvantages so I want to be safe. Thanks in advance and good luck with your biz!
Hi there – couple things. Its not that I can’t speak about the contract, its that I choose not to. Groupon was great to work with and I don’t want to speak about things that only apply to me. As for the process, I called them up (Erica G is awesome), we discussed a couple different deal options and signed the contract. They did everything after that – writing copy, choosing photos, etc. but If your friend that isn’t what you should be concerned about. Big question is can he/she manage a large influx of clients and the associated work. That is no joke. Good luck.
I think this is a fantastic and completely useful post. I’ve been thinking about doing Groupons as well, but the sheer amount of potential sales scared me. I would love to get an update in 3 more months when it’s all said and done. I may consider this option if/when I open my own studio to generate some buzz.
Thanks so much for the informative post!
Hey Joey,
I have been considering Groupon for my new photography business because I’d like to get more customers. I use Pictage for my proofing & print sales and find that it’s a lot more convenient for my clients to order whatever their hearts desire from the galleries I set-up for them. They can even design and order an album if they’d like.
It sounds like Groupon was a great way to get your brand out to the masses!
Thanks for the article!
[...] anybody is considering doing something like this, this article might be useful to read. What you need to get your Groupon – a photographer’s perspective: Joey Chandler – … __________________ [...]
Some good info here. I am considering this now, but am being undercut by beginners and those who tend to ruin the market. I was told by one deal company that a woman was offering an hour shoot, 20 retouched images, a disc with everything on it and full copyright for $30. While it’s a great customer acquisition tool, it’s offers that cheap that are even killing it for someone who shoots exceptional, original photography as I do. When photographers don’t know the value of their work, it affects things for others who know the difference.
[...] their door. You can read about the experience of one San Francisco photographer, Joey Chandler, here. It is not my place to tell a creative business to use or not use a particular tool if they [...]
[...] pressure on the act of creating the image has never been greater. You need only take a look at Groupon offerings by photographers to witness the price of creating an image approach zero. On the other hand, services like the Album [...]
Hey Joey,
Yes this helped a lot. I’m in the should I or shouldn’t I group so I doing some well in advance research. I have some major revamping to do so I would like to be as ready as possible if I make the decision. Thanks again for your enlightening post.
- Nathan
Thank you for this thorough post, including your follow-up notes from July. Followed a link posted in the comments on the MCP Actions Fan page and wanted to let you know I enjoyed the work you poured into writing such a detailed post.
I’m so glad you put this together for the rest of us to read. This was EXTREMELY helpful in my decision-making process!! Thank you!
[...] Marketing For Your Local Business – Should Your Company Use Groupon to Increase Sales? | BNET What you need to get your Groupon – a photographer’s perspective: Joey Chandler – … Groupon Review for Photographers Groupon for Photographers: 6 Best Practices – A Picture's Worth [...]
Your post is just what I was looking for. Thanks for sharing! Do you think doing a Groupon deal is a good way to make the transition from part time to full time photography? I’d love to do Groupon, but I know I won’t have enough time unless I take a leave of absence from my 3-4 day day job, or quit. Is this the time to do it?
Tough call – I would only go full time if you are in it for a long hall. Its not easy and takes a lot of work so you need to be ready for that with or without groupon. But if you are thinking about it and want to jump then jump (but not because of groupon).
Thanks for such a big and detailed review!
It seams Groupon has a great potential!
Interested: Does Groupon allow to offer digital products using their system, or, it’s possible only with physical products and services?
Kind Regards,
Photo Editor of Photo-help.com
Not sure about digital products – I imagine so but you should contact them.
Really good stuff Joey. I’ve been thinking about groupon for some time now, but haven’t spent the time to think about all of the logistics and just how much business to expect from it. This article was super helpful and gave me a lot to think about.
Glad you liked it Ryan. Let me know how Groupon-ing works out for you.
Thanks so much for the heads up. This information is great and oh so helpful!!
[...] their business by far gets the most traction, references and link backs. My two posts about using Groupon to help start my business have been referenced more times then almost all of my other posts [...]
Thanks for taking the time to share this. I may be hitting you up soon for a mentoring session. I was thinking of doing this in August.
Great – are you doing the groupon in August or the coaching session?
Hi Joey
I’d lilke to say that it’s a tough call to decide exactly what percentage you should offer off the shoot price and what other products to offer. I guess your terms and conditions should be tight as to what exactly is included epecially location.
Could you say from your personal experience what propartion of the clients that you had from Groupon were from your prefered group. Does anyone have any experince of retaining the groupon clients for other work?
Thanks agin for your post very useful in drafting my first Groupon deal
Rosemarie
Thank you for the informative article!
Photographers please ……. Retain your copyright!!! Dont give out your Hi-Res files. Why give the labs the profit on what you created? Provide a reasonable offer, do a great job and try and sell additionals to your new clients. Even if you average a couple hundred dollars per client, that will make it a worthwhile deal for you. If you wish, give your clients a web quality 72 dpi file of the images ordered or purchased with your studio watermark for use on Facebook or uploading to iPhones, iPads, etc. This will increase your exposure to thousands more people. I’ve been in the business of photography over 25 years, negatives were never provided to customers. Photographers that were rumored to be doing that were often blacklisted. These days all the newbies have started the new trend of shooting and burning files. What was once a respected and profitable profession has turned out to be one of the least lucrative businesses out there with established studios closing there doors daily on a nationwide level ! Let’s stick together and take control. STOP the HI RES Epidemic!!!