It isn’t uncommon for small businesses to look into online deal providers and discover that many require a 50% discount on goods and services – and then they take 50% of profit as a price for the service.
Janet Brown, business administrator for Cape Fear Aesthetics, says that the Fayetteville, North Carolina-based medical spa knows this firsthand.
Last fall, the business used a prominent online deal provider to bring in new customers, but realized that too much of the revenue was being split.
“We liked offering customers a deal, but wanted to keep more of what we were making,” Janet explains.
So, the next time Cape Fear Aesthetics ran a deal, the spa chose to use SaveLocal.
The deal went so well – and cost so little – that the spa ran another deal, and then a third.
Overall, the offers earned $42,050 in revenue, with a total of 173 coupons redeemed.
So what was so special about the deals?
An organic promotion
Cape Fear Aesthetics launched the first deal on March 23rd, offering Botox treatments for $150 that ordinarily cost $275.
The spa sent an email to the 10,000 contacts on the Cape Fear Aesthetics email list, but also thought of other ways to promote it.
“We posted the deal on our Facebook Page and put out a few advertisements at the local chamber of commerce and in a newspaper,” Janet says.
While these promotions were happening, Janet decided to run another deal at the same time: a 61% discount on three laser hair removal treatments.
To further spread the word, Janet offered a $5 coupon to a local car wash to anyone who shared the deal with friends through social media.
The reporting tool in the SaveLocal dashboard helped Cape Fear Aesthetics keep track of where the deal was being sent:
All of the promotions seemed to work – in just two weeks, 96 people redeemed coupons for the Botox treatments, for total revenue of $14,440. In just one week, 50 coupons were redeemed for the laser treatments, earning the spa $8750.
In late May, Cape Fear Aesthetic ran another deal for one week – a 50% discount off Radiesse filler treatments that earned $18,900.
The price advantage
Although Cape Fear Aesthetic ran discounts that were just as big – or even bigger – than those generally required by prominent online deal providers, the spa could control the terms of the deals completely: the duration, exact pricing, and terms & conditions.
Since each of Cape Fear’s SaveLocal coupons was worth more than $50, the spa paid the maximum price for each redeemed offer … $3.
That means, in total, the spa paid $519 for $42,050 in revenue. When compared to the $21,025 price tag of a 50% revenue share with other deal providers, SaveLocal happened to save Cape Fear quite a bit of money.
“We’ll be running another deal, and we’ll be using SaveLocal,” she says.
Want to try a SaveLocal deal yourself? Check out SaveLocal.com for more information!