Monday, November 21, 2011

British Baker Tries Groupon, Sells Cupcakes, Loses Shirt

Posted By on Mon, Nov 21, 2011 at 3:15 PM

click to enlarge groupon1121.JPG
eet Rachel Brown. She owns a bakery called Need a Cake in Great Britain. In the average month, reports the Daily Mail, she sells about 100 cupcakes. Recently she offered a deal on her cupcakes through Groupon.

Some 8,500 customers bought the deal. Need a Cake was on the hook for 102,000 cupcakes.

Need A Cake, which employs eight people, had to bring in up to 25 agency staff who worked into the early hours to meet the huge upsurge in demand.

Mrs Brown, 50, made a loss-making £2.50 per order and paid £12,500 for the extra costs of staff and distribution, wiping out her profits for the whole year.
Remember, businesses: If you have a small capacity for production, be sure to limit the number of deals you offer through Groupon.

Or maybe Ms. Brown was just trying to stimulate job creation.

To her credit, as a plan to rescue a troubled economy, it makes about as much sense as 9-9-9.

(h/t: Eater)

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