Groupon burns small bakery with 102,000 cupcakes

http://www.msnbc.msn.com/id/45398235/ns/world_news-europe/

by yalimkgerger • 15 years ago

2 2 15 years ago

msnbc.msn.com

drtyhrsd• 15 years ago

"run the business for 25 years" ... "lost between $2.90 (£2.50) and $4.70 (£3) on each batch she sold" ... "We had thousands of orders pouring in that really we hadn't expected to have"

Loss leaders need to be treated with care (doubly so if it costs you a £10 to make 12 cupcakes!)

mitchelldm7• 15 years ago

This article suggests that it is Groupon's fault. Nothing could be further from the truth. Not even the most aggressive account executive could force this plan down the throat of a business owner. They solely elect to proceed with a Groupon promotion or not.

The fact that it was so successful is hardly a negative for Groupon -- quite the opposite, in fact. It suggests instead their command over marketing capabilities and their eager customer base.

This business owner should have worked with Groupon to design a promotion that covered costs - so that this wasn't so financially damaging.

Groupon burns small bakery with 102,000 cupcakes

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