What Is Hurting Our Local Small Businesses? ⋆ Agora Perks

What Is Hurting Our Local Small Businesses?

South Florida Small business owners don’t fall into this trap and end up failing, did you know the SBA reports 30% of small business owners will fail within 2 years and 50% will fail within 5 years.  There are many reasons of course but not enough sales is usually among the top three as a reason for failure.  The small business owner must set aside a part of the business budget to advertise and bring in customers. The budgets are usually very limited and many must seek inexpensive methods to bring and increase sales.

Companies like Groupon provide an option by providing a digital advertising platform, initially for free, to create digital coupons typically posting huge discounts of 50% to 90% off the regular price. On their site, Groupon claims this will bring in new customers and they will eventually become loyal to your brand or business. On the surface this may sound great, Groupon has even reported sales in the billions of dollars, year after year but let us take a closer look.

Consider the damage to the local business ecosystem when small business owners operating on a limited budget with a very small margin of profit are forced to drop their pricing by 50% to 90% to create coupons to attract customers.  These digital coupons offers are then sold to consumers on a pre-sale transaction by companies like Groupon who then take up to 60% of the coupon sale price, leaving 40% for our small business owner to pay all expenses and remain profitable.

Take for example a local restaurant with a steak dinner for $29.  By reducing their main entree by 50% the steak dinner is now $14.50 a bargain hunter purchases the coupon for $14.50.  When the coupon is redeemed, then $8.70 (60%) goes to Groupon, while only $5.80 (40%)  goes to the small business owner who in turn has to absorb all the cost of running the entire business.  This is a disastrous formula and is not a sustainable model, it cost the small business owner 80% of the retail price to get in one bargain hunter.  There are many horror stories on YouTube and Google that bear witness to small business owners going out of business because of this model.

You have to ask yourself; why would any business owner agree to that? In a recent survey, the answers were varied and ranged from “convincing sales presentation that promised loyal customers” to the “desperation and the need to bring in new customers” to “lack of better choices because of small or no advertising budgets.”

Business models like that of Groupon are great for producing profits but do not pose a win-win scenario for the small business owner or really even the consumer.  After all, if a business fails the local community economy is also affected.  A quick Google search for “How has Groupon hurt small businesses” or “Groupon complaints” will produce 100’s of articles, stories, videos and statistics that bear one final question. Is there a better choice?

We believe so, Agora Perks is a digital coupon and loyalty program platform specifically designed for Small Local Business Owners and unlike Groupon, Agora Perks has a completely different business model.

Agora Perks does NOT force discounts on a small business to sell coupons.  With a varied menu of options like Perk Programs, Loyalty Programs, BOGOS, Gift Certificates, Reward Programs and of course Traditional Discount coupons a business owner can choose which option or strategy is better for their unique business.

Agora Perks does NOT charge a percentage of sales, whatever the business owners sale price is they get 100% of the sale commissions. No sales commission sharing.

Agora Perks charges just one low flat rate a month of $79 to $99 a month, no matter if the coupon offered has 50 users or 500 users. Just one simple flat rate.

Agora Perks was created with the small business owner and local consumer in mind. Our motto is “Buy Local, Save Local, Stay Local” and our mission is to create mutually rewarding relationships between local consumers and the small businesses in their communities.  Click here to Start Your Coupon Program today!

We are out to change the mindset of our local business owners and help develop our local business communities. We invite you to learn about Agora Perks and please share with us what your thoughts are? What has your experience been like with companies like Groupon?

Gerardo Reyes

Way Out Mobile is the Parent Company of Agora Perks. We specialize in developing Mobile APPS and setting up effective and meaningful Digital Marketing Plan. wwww.WayOutMobile.biz Contact me, let's talk. Info@WayOutMobile.biz

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