Rachel Brown of London has posted her horror story with daily deal giant Groupon.
Brown signed up her 'Need a Cake Bakery' to the site, selling a dozen cupcakes for $10, 75 percent off its usual $40 price tag.
Because the company did not allow her to set a limit to vouchers, 8500 people purchased Groupons - meaning Brown had to create over 100,000 cupcakes.
The baker was forced to hire extra workers and work overtime, overall losing about $20,000 in weeks.
Says Brown (via CNBC):
Brown has been running her bakery for 25 years with high reviews.
Because the company did not allow her to set a limit to vouchers, 8500 people purchased Groupons - meaning Brown had to create over 100,000 cupcakes.
The baker was forced to hire extra workers and work overtime, overall losing about $20,000 in weeks.
Says Brown (via CNBC):
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.
My poor staff were having to slog away at all hours ? one of them even came in at 3 a.m. because she couldn't sleep for worry. We are still working to make up the lost money and will not be doing this again.
Brown has been running her bakery for 25 years with high reviews.
