Local Businesses Use Web-Based Advertising

Some local businesses have been using websites such as Groupon and Living Social to advertise.

Crossfit Pandora’s Box is a gym that offers an intense exercise program. It recently offered a Groupon for a 10-session punch card.

That originally costs $120, but customers who bought the Groupon paid $29.

It is those deep discounts and the business they bring in that pique the interest of both consumers and businesses, said Crossfit owner Tamara Gray.

Gray said she mostly wanted to offer the Groupon to get exposure for her fairly new business. Pandora’s Box opened in September of 2010.

Gray said her business has mostly grown thanks to word of mouth, but she was looking for a new opportunity to advertise that would not cost too much.

Pandora’s Box sold 351 Groupons within two days. Gray said she was surprised and pleased with the high volume of sales.

However, Gray pointed out that using Groupon is costly for businesses. Groupon took half of her revenue and charged her a credit card fee.

According to economist Fred Crowley at the University of Colorado at Colorado Springs, businesses need to think of advertising as a long-term investment.

He said businesses will most likely lose money on deep discounts before they are able to get new customers to become repeat customers.