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THE FLASH SALE PHENOMENON & LOCAL DEALS™

Joel Brandon-Bravo

Managing Director, UK

October 2011


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Four Types of Customer

££

£

“I know what I want”

££££

“I have a good idea what I’m

looking for and also want a good price”

£££

“I’m flexible about

‘what’ and am looking for a great

deal”

£££

“I’m not even

looking to go away”

£££


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What is a flash sale?

• Compelling offer for a fixed period

• Sent to an online audience, daily?

• Voucher sold by third party site

• Revenue share basis

• Increased sales volume

• Brand exposure


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Marketplace


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Travel & Tourism, Restaurants and Spa $ 84/230m or 37% of the space

Deals by Category


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The Benefits

• Zero upfront cost

• New clients

• Repeat business

• Exposure


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The Rub

• Little Margin

• No guarantee of up-sell /

repeat business

• Hidden costs

• Overselling/lack of control

• Emails are not always solus

OVERSELLING


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How to make it work

• Incremental business, focus on need period.

• Deal structure

• The right discount

• Attracting the right audience

• Ask for testimonials


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Who do you want to attract?

• 35+

• Women

• High disposable income

• Local area


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Spa

“The volume is most unexpected...”

“...the clientele are of high calibre and 95% new customers and at least 20% are buying extra treatments”.

Adam BellBusiness Development Manager Macdonald Manchester Hotel Spa


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Restaurant


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Getaway

“We do see this type of tactical marketing taking over from our more conventional marketing spending. We see this working especially well for us as our business remains stubbornly 'seasonal’ ”

Peter LavinGeneral ManagerConway Castle


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Summary

• Voucher model can work if:

– The right deal

– To the right audience and size

– In the right area

– With the right business


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Restaurant’s General Manager says she’s crossing her fingers “…that we don’t lose money.” Three months after 2,243 vouchers were sold for a four-course dinner for two.

“But we loaded it up too much” Bowman says. “We didn’t leave ourselves enough room for up selling.”

But there have been enough stories from disgruntled establishments using other vendors, such as Groupon, to provide some caution for suppliers about the business model. She adds: “I don’t think we are losing money, but I wouldn’t bet that we are making money, either.”

A lot of customers may tip on the voucher amount and not on the much-higher retail value.

http://www.groupon.com/


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For more information please contact:

Joel Brandon-BravoTravelzoo (Europe) LtdManaging Director, UKTel: +44 20 7420 0402Fax: +44 20 7420 0401

email: [email protected]: @joelbrandonBrav

skype: jbrandon-bravo_tzoo

Q & A

mailto:[email protected]


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Tea Time

• Tea and smoothies on me!

• Win Vouchers


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right area

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