Groupon Deal "eats photographer alive"

[kevin_break]

<p>As see on Slashdot, http://news.slashdot.org/story/11/05/08/1222209/Groupon-Deal-Costs-Photographer-a-Years-Free-Work</p>

 

<p>"Even if this photographer is doing each job to a bare minimum standard, he has committed himself to nearly a year’s work for no money. If that doesn’t sound like good business sense to you then be very careful if you decide to offer a deal through Groupon or any similar site. What may at first seem like success could very easily put you out of business. "</p>

<p>Link to direct article here:<br>

http://www.meejahor.com/2011/05/08/beware-of-the-groupon-piranhas-eating-you-alive/</p>

[waltflanagan]

<blockquote>

<p>This analysis seems to be based only on the author's observations (rather than the photographer's experience), </p>

</blockquote>

<p>I don't think the joke is on the photographer, I think the joke is on groupon and its users. A deal that's too good to be true is usually a scam. How does groupon approve deals like checking that you are a "real' business? How and when does money get exchanged? Initial sale? Final delivery? Even if it's legitimate only an idiot photographer would try to follow through. If he just ignores the customers what happens? Is Groupon going to sue him?</p>

[Matt Laur]

<p>Another reason why artistic kids in school should go ahead and pay attention in math class anyway.</p>

[eric merrill]

<p>I'm thinking Groupon is more ideally used to drum up business where there is little labor cost involved. Provide a coupon good for two prints for the price of one. I could support that model without putting my business in jeopardy even if I net nothing from the Groupon deal. The biggest cost to me is my time for the sessions and my time in getting prints ready. Adding a duplicate print is sustainable for me.</p>

<p>My wife and I have used Groupon deals for local restaurants, and the minimum is usually more than we'd spend. By the time you factor in the restaurant getting half the price, they're usually getting just a little less than we'd spend if we were paying without the coupon. For example, we'll buy the $30 for $15 certificate from a local place we frequent anyway. Usually costs $20 for two of us at lunch. This way, we can splurge and get dessert for about the same price. The restaurant grosses $5 less, but the server is getting $3 more tip. In the end, we get dessert and save $2. I see that as a win for everybody.</p>

<p>Eric</p>

[markus_thompson]

<p>No harm in seeing what you can get. That's called free trade. But the truth of the matter is you get what you pay for.... and at those rates no one can be expecting very much.</p>

<p> </p>

[jaydesi]

<p>What doesn't make sense to me is the huge discount for the Groupon price...£29 for a £200 session? Why would the photographer set such a huge discount? So why not set the coupon at £100? That would be about 4x the revenue, and while small, may lead to future full-price sales. I don't think Groupon is the bad guy here, I think the photographer just didn't think through the pricing.</p>

[john_c16]

<p>Here's a similar case in my area, though they haven't sold 300. He's a very well established photographer with a good reputation. I've even thought about getting it because it costs me more to do my own and make a canvas print!</p>

[john_c16]

<p>Ok, here's the image... and forgot to include the fine print:<br>

Photographs provide a more concrete way of recording recollections than sketching portraits in sand or dictating memoirs to an empty jam jar. Preserve precious memories with today's Groupon: for $59, you get a summertime family photo session with an 11" x 14" canvassed wall portrait from Christopher Clark Designer Portraits</a> (a $460 total value).<br>

A card-carrying member of the Professional Photographers of America</a>, Christopher Clark</a> nabs artful snapshots that capture timeless images on location (within 20 miles of his studio) or in his swanky studio tucked in the historic Delano district. Subjects select the scenic setting to purvey their pearly whites, and a preplanning consultation covers wardrobe, scene, and the perfect placement of bunny ears to succinctly and artfully express the essence of your kin. Each family photo session (a $165 value) is eternally commemorated with an 11" x 14" portrait, complete with light facial retouching and acrylic lacquer protectant for the portrait of the patron's choice (a $295 value).</p><div></div>

[williamlewisphotography]

<p>For those who don't know Groupon takes 50% of all end Sales. So if the purchase price of a groupon is say $30. The vendor only receives $15 . This is what I was told by a local restaurant that participated. The only thing that help's save the vendor in some cases is that not all coupons are redeemed.</p>

[cliff_nj]

<p>Sounds like the classic business plan to lose money on every transaction but make it up with high volume!</p>