

Groupon burns small bakery with 102,000 cupcakes - yalimkgerger
http://www.msnbc.msn.com/id/45398235/ns/world_news-europe/

======
mitchelldm7
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.

------
drtyhrsd
"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!)

