Unfortunately businesses adopt common fallacies including:
- "It's just a cost of marketing,"
- "It gets me in front of new customers,"
- "They'll come back and pay top dollar."
The reality is that these customers don't return to those stores. Instead, they look for the next bargain. Phibbs, the Retail Doctor® , tackles all the fallacies of deeply discounting a product or service in his new book and offers, "The trouble with being the lowest price in town is that someone else will offer an even better deal. In the end, retailers, restaurants and service providers lose their profits and don't acquire the hoped-for long-term, repeat profitable customers."
Phibbs began gathering this research on his website after highlighting a Groupon horror story of a small business owner. In his new book, he takes it one step further by asking "Is Groupon bad for business?" He offers an in-depth look at the real numbers of these deals and how they can hurt businesses. What he's learned in his research is that the Groupon business model does not bring in more profitable customers. In fact, they tend to be a losing proposition for the business owner, sometimes in the form of irreparable damage.
Groupon: You Can't Afford It – Why Deep Discounts Are Bad For Business brings brand managers, business owners and restaurateurs insight about how damaging such promotions can be. Jeffrey Summers, President of RestaurantWorx, reviewed the book saying, "Bob understands that if you use a coupon to attract a customer, you will have to use [coupons] to keep them. And this strategy kills real long-term value for the business and eventually the customer as well. If you are a business owner and thinking of using Groupon or another Groupon clone, you owe it to yourself and your business to read Bob's book first. I guarantee you this will be the best money you ever invested in helping you better understand how not to market your business."
Jessica Faust, CEO of Beyond the Page Publishing, added, "This book is a warning cry to anyone who thinks Groupon can help them grow a business. This book should be mandatory reading for any business owner who has ever even considered a deep-discounting service like Groupon."
In just the first few days of availability on Amazon, the book was #1 bestseller in retail business books. You can purchase and download the e-book from Amazon or Barnes & Noble's Nook for only $9.99. Additional formats will be coming soon.
About Bob Phibbs, The Retail Doctor®
A retail consultant and frequent guest on MSNBC concerning marketing, branding and business strategies, Bob Phibbs, CEO of the Retail Doctor®, has helped thousands of businesses in the retail, hospitality, manufacturing, service, and restaurant sectors. Phibbs' previous books include The Retail Doctor's Guide To Growing Your Business from Wiley and You Can Compete: Double Sales Without Discounting . Visit Bob's website at http://www.RetailDoc.com and download Bob Phibbs' speaker packet here .