Group discounts can be a nice thing for both the seller and the customers¸ but you have to know your limits. A UK baker learned that the hard way¸ when she was forced to bake 102¸000 cupcakes¸ after offering a 75% cupcake discount on Groupon.The discount obviously sounded too good to Grouponers¸ 8¸500 of whom signed up to buy 12 cupcakes for £6.50 ($10)¸ down from the standard £26 ($40) price. Rachel Brown¸ who operates the Need a Cake bakery in Woodley (near Reading¸ UK)¸ had to hire extra workers and try to bake the cupcakes to satisfy the swarming customers.
“Without doubt¸ it was my worst ever business decision. We had thousands of orders pouring in that really we hadn’t expected to have. A much larger company would have difficulty coping¸” said Brown¸ who lost up to £12¸500 ($20¸000) on the deal.
“We approach each business with a tailored¸ individual approach based on the prior history of similar deals¸” Groupon’s international communications director Heather Dickinson told the BBC¸ adding that there was no limit to the number of vouchers that could be sold.