British Baker Tries Groupon, Sells Cupcakes, Loses Shirt

Categories: WTF?
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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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4 comments
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Randson112
Randson112

That is the type of person who i would do business with anyday, one who honours her word even though it costs her.

Donttakeittooseriously
Donttakeittooseriously

Nope. The Keynesian model failed miserably here. Not a fan either, but he managed restaurants successfully.

Renee
Renee

It will be interesting to see going forward if any of those customer become repeat business. In which case, it was a short-term loss, but a long-term investment in developing the customer base. I could see how that would put a small producer out of business quick like though.

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