DC Groupon deal - 50% off beginners kit

Groupon deal for a Midwest beginners kit:
http://www.groupon.com/deals/midwest-hydro-dc

"for $64, you get a brewing essentials equipment kit (a $56.95 value), a steel bottle opener (a $14.95 value), your choice of either an Irish red ale, an autumn amber ale, or an Irish stout ingredient kit (up to a $25.95 value), an instructional DVD (a $4.95 value), and a $25 gift certificate for your second batch shipped from Midwest Homebrewing and Winemaking Supplies (up to a $130.80 total value). A $12 shipping fee is not included in the price of the Groupon"

That's a damn good deal. The kit and gift certificate alone are worth $50.

Yeah, that's not the deal I get.

I hate Groupon.

Edit: Ahhh, found it. I still hate Groupon.

Do you have to be a DC local for this to work? I know nothing about groupon.

Wow...great deal.

Unfortunately, I don't like taking advantage of groupon because of how much these business owners lose.

Before I knew the details of groupon, I loved it. I know the owner of a local craft beer store. He has some of the best beers in the area. He did a $50GC for $25. I obviously bought one. When I went to redeem it, I talked to him and found out he lost over $25k just from selling 750 tickets.

He said that groupon takes something like 40% of whatever you charge. So they were taking $10 and he was only making $15. He was losing $35 for every one sold. Now...I'm sure he didn't lose that much real money since there's obviously a markup, but I'm sure he lost at least half of the $25k.

I don't like doing that to local businesses. Big box stores...bring it on.

Suthrncomfrt1884 said:

Wow...great deal.

Unfortunately, I don't like taking advantage of groupon because of how much these business owners lose.

Before I knew the details of groupon, I loved it. I know the owner of a local craft beer store. He has some of the best beers in the area. He did a $50GC for $25. I obviously bought one. When I went to redeem it, I talked to him and found out he lost over $25k just from selling 750 tickets.

He said that groupon takes something like 40% of whatever you charge. So they were taking $10 and he was only making $15. He was losing $35 for every one sold. Now...I'm sure he didn't lose that much real money since there's obviously a markup, but I'm sure he lost at least half of the $25k.

I don't like doing that to local businesses. Big box stores...bring it on.

Click to expand...

If he didn't feel that he was going to recoup that $25K in losses with the influx of new, repeat customers he wouldn't have done the Groupon in the first place. These types of sites (Groupon, Living Social, Youswoop, etc) are handy marketing tools, but they do come with certain risks and should be fully investigated to determine if the long term benefit will outweigh the short term losses.

That has always been the benefit I'd seen with Groupon and the others as well... Sure you're not going to make killer profits on what your selling but the whole idea is to introduce yourself to new customers.... Advertising isn't cheap but at least this way the only people you are paying to advertise to are people that are actually going to come sample your goods/services. That being said, If I were to run a Groupon deal I'd do my best to make sure I was either coming close to breaking even on my offer or making sure there was a cap limit on the deal.... I've seen some of those things blow up and have 2,000 some odd people buy them.

Also, I live in Seattle and saw a deal like this (may have been the same one in fact). I was going to tell some friends who are considering getting into brewing about it until I saw that it was from a non-local business...not sure if it was DC but it was definitely East Coast. I'm not too psycho about making sure that I only support local business but I kinda felt that was part of the allure of these deals to me.

Sorry, I know this isn't a business forum but I had to put in my $0.02

So I understand the business concerns, but I have to put some kind of faith in the business owner that they knew fully what they were getting into before actually doing it.

But back to lebshiff's question...how does groupon work? Will I run into any issues purchasing this if I'm not DC local?

Suthrncomfrt1884 said:

Before I knew the details of groupon, I loved it. I know the owner of a local craft beer store. He has some of the best beers in the area. He did a $50GC for $25. I obviously bought one. When I went to redeem it, I talked to him and found out he lost over $25k just from selling 750 tickets.

He said that groupon takes something like 40% of whatever you charge. So they were taking $10 and he was only making $15. He was losing $35 for every one sold. Now...I'm sure he didn't lose that much real money since there's obviously a markup, but I'm sure he lost at least half of the $25k.

Click to expand...

Keep in mind though that the best estimates of the redemption rate of Groupon purchases is 70-80%. So, of those 750 groupons sold, 150-225 will never be redeemed which means he got the money & kept the beer -- pure profit.

Still, a Rice University poll showed that 40% of businesses that used Groupon wouldn't do so again (but 60% would). So it's complicated what the breakeven point is with the new customers brought in factored in.

nestorlinks said:

So I understand the business concerns, but I have to put some kind of faith in the business owner that they knew fully what they were getting into before actually doing it.

But back to lebshiff's question...how does groupon work? Will I run into any issues purchasing this if I'm not DC local?

Click to expand...

Its an online redemption, nothing in the rules that say you have to be local. Basically Groupon will send you a coupon code that you enter into Midwest's website when you're checking out.

Oh, heres the one I found. Apparently Its still active for another day. Beginners Brew kit for $49.

http://www.localtwist.com/deal/seattle-beer-and-wine-hobby?hlq=69ed74ed294c45798fb0a325cecb51e4

Not sure if that Link will work for anyone else. The deal is through http://www.localtwist.com . Create an account and change your city to Seattle. Looks like all of the vouchers are redeemable online.

is this deal gone? i can't find it.

Yes, they stopped selling at 488 purchased.

Suthrncomfrt1884 said:

Wow...great deal.

Unfortunately, I don't like taking advantage of groupon because of how much these business owners lose.

Before I knew the details of groupon, I loved it. I know the owner of a local craft beer store. He has some of the best beers in the area. He did a $50GC for $25. I obviously bought one. When I went to redeem it, I talked to him and found out he lost over $25k just from selling 750 tickets.

He said that groupon takes something like 40% of whatever you charge. So they were taking $10 and he was only making $15. He was losing $35 for every one sold. Now...I'm sure he didn't lose that much real money since there's obviously a markup, but I'm sure he lost at least half of the $25k.

I don't like doing that to local businesses. Big box stores...bring it on.

Click to expand...

Actually, i think Groupon takes around 50%. But the business owner obviously knew that going into the deal so if he didn't like it, why did he do it? I've heard lots of success stories with small businesses using Groupon to get their name out there. I guess it goes both ways.

Groupon has taken me to alot of places I otherwise wouldve never gone. In fact when I was in Phoenix last week I had purchased a groupon for this place called NY Boyz Pizza & subz. Never been there before. When we drove up, I seriously would have kept going. IT was in a sheisty neighborhood and attachedto a car care center I decided since I had the groupon we'd go ahead and use it and that place was AWESOME. I know I'll go back every time I'm in town.

Girlfriend bought me a MWS groupon similar to that (but cheaper and no bottle opener or $25 GC). It was a stellar deal.

And no, you don't have to be local. The one she got me was KC but was online only. I've always wondered why they only display the online ones in certain markets, seems like they could sell more if they displayed them in every market.

cincybrewer said:

Actually, i think Groupon takes around 50%. But the business owner obviously knew that going into the deal so if he didn't like it, why did he do it? I've heard lots of success stories with small businesses using Groupon to get their name out there. I guess it goes both ways.

Click to expand...

Opening up the doors to new customers is great, if that's what it's doing.

When it comes to a high end wine and beer store, most of the people who would be interested already know about the place. The owner actually mentioned that most of the people he had seen using the groupon were people who are in every few weeks. He doesn't even sell BMC products, so anyone who'd be interested in discounted beer on that level would be out of luck.

I can see it bringing in new customers for wine, since he has a huge selection of wines, but not for beer.

I think it's a great deal for everyone. Sure there are probably some of the deals that don't work out, but I think midwest has the right idea with theirs. They offer a starter kit, and a recipe kit......but throw in a gift card too. Let's be honest, who spends 25 dollars when they order stuff? My average order is 60 to 150. Sure, they won't get everyone to order more than the 25, but I think they'd make out great with the overspending on that gift card. I tried to get in on this, but missed out. Next time I won't hesitate.

There was a great article on the business strategy of groupon. Apparently businesses make Money on them since there's always a small percentage of coupons hat never get used, but the business still gets half the money ( groupon cuts them a check)

Sorry
I thought this was ment to be about finging a quality brew kit for beginners. Not a chat about what cupons do for retailers.
Can anyone auctley come up with some choices for home brew starter kits for a beginner.
I have absolutely nothing and have never brewed before.
I live in Australia and love my beer but desperately want to start brewing my own.
Kind regards,
Beerbuzz...