Groupon 1% conversion rate for salons

I'm currently an intern at a large daily deals site. I often hear my bosses talk about if businesses use our site and run deals, they'll attract a new customer base that have never heard of them before. For some types of businesses I can see that being true, but not really for salons. Our biggest sellers our typically salon type services (mani/pedis, hair removal, massages, etc.). Since customers know that these types of deals show up on our sites often, why would they ever pay full price?

Say you got a deal for a $20 mani/pedi and you get great service and everything goes well. A month later you need another one, and you see another deal to a different place for $20 again. Our site, as well as other reputable deal sites, only put businesses that have good feedback online, so the customer is pretty much guaranteed to get a good experience regardless of the salon - giving the customer no incentive to go back to the original salon.