News Story: Small Bakery Burned By Groupon

Business By MimiFix Updated 26 Nov 2011 , 8:10am by MissCakeCrazy

MimiFix Posted 22 Nov 2011 , 10:57pm
post #1 of 7

We've talked on previous threads about the benefits/disadvantages to using Groupon (and similar coupons) as a way to increase business. According to this news story, a bakery owner severely misjudged her ability to supply customers. She offered a seventy-five percent discount on one dozen cupcakes but "under-estimated the popularity of the deal and was unable to cope when 8,500 people signed up for the $10 (£6.50) bargain." Full story here http://www.msnbc.msn.com/id/45398235/ns/world_news-europe/

6 replies
CWR41 Posted 23 Nov 2011 , 12:52am
post #2 of 7

rlowry03 beat you to it this morning...
Groupon costs bakery $19000!:
http://cakecentral.com/cake-decorating-ftopict-735564.html

cownsj Posted 23 Nov 2011 , 3:00am
post #3 of 7

I feel really bad for this bakery. But, before you enter into something like this, you really need to do your homework first, limit the number of sales, know what you are willing to sell for, etc., etc. I have no doubt they expected a hundred or two hundred sales, and ok, you can take a loss. This just shows that you need to be careful with all your business decisions.

Honeybees Posted 23 Nov 2011 , 3:37am
post #4 of 7
Quote:
Originally Posted by cownsj

before you enter into something like this, you really need to do your homework first




I couldn't agree with you more. I really do feel for the woman tho.

MissCakeCrazy Posted 25 Nov 2011 , 9:36pm
post #5 of 7

Mimifix, can you please tell me which thread I could find the ad / disadvantages of selling through groupon?

jason_kraft Posted 26 Nov 2011 , 4:38am
post #6 of 7
Quote:
Originally Posted by MissCakeCrazy

Mimifix, can you please tell me which thread I could find the ad / disadvantages of selling through groupon?



Here is a list of relevant CC threads:

https://www.google.com/search?hl=en&source=hp&biw=1280&bih=670&q=groupon+site%3Acakecentral.com&gbv=2&oq=groupon+site%3Acakecentral.com&aq=f&aqi=&aql=1&gs_sm=e&gs_upl=431l4871l0l5022l30l21l0l12l0l1l325l1877l0.4.4.1l9l0

MissCakeCrazy Posted 26 Nov 2011 , 8:10am
post #7 of 7

Thanks icon_smile.gif

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