Yet another confusing Groupon ad

[kylehess10]

I just noticed this offer on my local Groupon (Atlanta area). For $16, you can get a "photoshoot" with the following:

"eight sheets total of the same image, with one 10"x13", one 8"x10", four 5"x7"s, ten 4"x6"s, and 16 wallet photos divided among them"


This really got me thinking, because it's only $16, so after Groupon's cut, are they really making ANY money at all on this deal? Or do you think this could just be for exposure?

They've sold 630 so far, and I think its been running for less than a day. I feel sorry for anyone that works at this place! They're going to be flooded with new clients. Great exposure, but at the same time, I wonder if they're making anything off of it. They claim it's worth $144.


Link to Groupon:

Picture People Deal of the Day | Groupon Atlanta

 

[cgipson1]

mall studios.... preset layout.. very little to no customization, and poor to average quality. They can move a lot of people very fast.... and they probably really push hard for sales on additional prints.

 

[CCericola]

They are making more then their free 8x10 campaign they always have. They are at least getting a small fee as opposed to $0. They are a multi-million dollar company with stores all over the country. 8 sheets is pennies for them. I bet they make a killing in upsales and club memberships.

I used to work at a Picture People at Christmas time. ( Wow did I hate that job) Even with all the wasted prints we made to show people we always showed a profit.

 

[Robin Usagani]

actually that is not as stupid as other groupon photography deals I have seen. At least they can make a huge profit. They dont have to travel anywhere and they only thing they are giving out are prints of 1 pose and NO digital files!

I have seen $69 ON LOCATION!!! with all digital files.

 

[jowensphoto]

Another retail chain (that must not be named) does a $9.95 "special" (it's not a special, they always have it); 10 sheets of one pose for 10 bucks. Then when it comes time to sell, it's all about up-selling. They will also teach you to lie and play dumb in order to confuse the guest and end up selling them way more than they could possibly use.

I'm not bitter or anything

 

[Josh66]

are they really making ANY money at all on this deal? Or do you think this could just be for exposure?

They are hoping that the people that come in for the $16 shoot will be repeat customers (they won't be) and pay full price next time.

 

[Robin Usagani]

they are hoping each customer would want more than one pose to take home (prints or files).

 

[kylehess10]

I see what you guys mean. Plus I didn't realize how big of a company they are. They don't have them at my local mall, so truthfully I had never heard of them until now.

 

[The_Traveler]

Do they do weddings?

 

[davisphotos]

My general impression is that Groupon works best for larger companies that have the infrastructure to handle a large influx of clients, and that can upsell effectively. The Picture People pays their photographers between $8-$12 an hour, and next to nothing for prints, so they probably can actually turn a profit with just a small upsell.