This information was prepared for you by Tara Thomman, Color Me Mine Marketing, and

Melissa Haligas, Groupon Business Development. For Color Me Mine internal use only.

In 2013 I (Tara Thomman, CMM Marketing) worked with Melissa Haligas at

Groupon to develop an offer that would overcome the challenges (profitability &

infringement) that have to date, stopped the Color Me Mine Home Office from

endorsing use of Groupon. We came up with a never before used offer and

payment arrangement. We tested it with several studios. All participating studios

experienced success. We saw exciting profits and new customer traffic.

We invite you to test the offer, and consider the following:

• Customer spend occurring Sept/Oct

• Offer expiring in mid November.

• Not run before or after the agreed upon time period, until the next organized run.

Continue reading to review the offer and the participating studio results.

THE OFFER & LIMITATIONS

For Color Me Mine internal use only.

THE OFFER

Wording has been revised based on feedback from the studios who ran. Please note,

the offer applies to either 2 people, or 4 people. A Groupon customer can pay $15 for

$30 credit at CMM FOR TWO PEOPLE, or they can pay $29 for $60 credit at CMM FOR

FOUR PEOPLE. The offer covers the studio fees, and leaves a bit of credit left toward

bisque, but it was designed to ensure associated sales. Color Me Mine receives

a preferred margin that has not been offered to other businesses. Please keep this

information confidential.

$15 for $30 towards studio fees & remaining balance towards ceramics for (2) people

Groupon pays the franchisee $10 for each voucher sold

or

$29 for $60 towards studio fees & remaining balance towards ceramics for (4) people

Groupon pays the franchisee $20 for each voucher sold

THE LIMITATIONS

The expiration was designed to drive traffic during a slow period and to end prior to

holiday spending begins. Valid zip codes are listed in order to avoid infringement.

Expires 120 days after purchase. Limit 1 per person. Valid only for option purchased.

Must use promotional value in 1 visit. In store only. Valid at listed location. Not valid on

national or school holidays. Valid only for customers who reside in listed areas.

THE RESULTS

For Color Me Mine internal use only.

Eagan, MN Owner: Julie Schroeder Launch Date: 7/30/13 Total Units Sold: 612 units Redemptions: 475 New Customers: 270 Customer Impressions: 180,967 Average ticket spend over the coupon: On 2 person deal: $28.86 On 4 person deal: $45.44

Sales Increase: August 2012: 23,905 August 2013: 32,698 9/1/2012 - 9/14/2012 = $5397.00 Total Sales 9/1/2013 - 9/14/2013 = $10,301.00 Total Sales

Total Groupon Coupon Sales:

$2,280.00

Total reimbursement from Groupon:

$731.00

FEEDBACK

For Color Me Mine internal use only.

“While I agree that running these types of deals encourage customers to wait for the next one, I do think it can be run with success if the deal is right and run infrequently. Heather and I always run these type of deals together. This one had an option for you to select Maple Grove or Eagan. We started selling them on July 29 and will stop selling them on 9/30. They can only purchase one and they can never purchase this deal again. Even if I run it again next year. They will be expired before December when alot of Holiday painting begins.” - Julie Schroeder, Eagan, MN “I sold around 950 and was #1 in the franchise in September (because of Groupon sales.) I would definitely do it again…” - Heather Kamin, Maple Grove, MN

Want to check in with studios who have run the offer? Toms River, NJ

Hamilton, NJ – 804 Offers Purchased, 467 Redeemed, 177 New Customers Voorhees, NJ – 832 Offers Purchased, 642 Redeemed, 250 New Customers

Freehold, NJ Maple Grove, MN

Eagan, MN – 612 Offers Purchased, 475 Redeemed, 270 New Customers Norfolk, VA

Bakersfield, CA