groupon horror story
- Thread starter Onedollaridea
- Start date
From this TechCrunch article: One very common phrase is in regards to the merchant “freaking out,” and this happens every single day. What this is almost always in reference to is a merchant who can’t handle the traffic that they end up getting, forcing a live cap of a deal (almost always because it benefits the sales people not to cap it, obviously, and they advise merchants to sell more Groupons than the business is able to handle, mostly by low-balling the estimate of how many will sell). There are also constantly issues with the terms changing, because, as you said, the merchants are sold on the “Who’s Who” pitch, and they agree to terms they should never have agreed to.
wait... you mean Groupons can hurt small businesses more than they help them? Who'd a thunk breaking even on goods (or selling at a loss) * more volume than the business has ever had to handle would be a bad thing?
She had the better part of a million dollars to make 102k cupcakes and couldn't figure out how to get it done. Pretty sure she could have outsourced it all for 500k including quality control, and banked the rest.
Darwin Award for business winner here.
Darwin Award for business winner here.
@soulbyproxy - it was $10/doz cupcakes, not $10/each. She had to bang out 102,000 cupcakes on a gross income of $85k from groupon. (that doesn't include whatever groupon takes as their cut.)
I suspect the long term value of all these new customers re-ordering at full price will make this worthwhile for her shop.
I suspect the long term value of all these new customers re-ordering at full price will make this worthwhile for her shop.
Why 75% off? They stupid. What did they get 5$ per dozen after groupons cut?
I know Cupcake Girls in Vancouver did a Groupon. My wife grabbed a few and I believe it was for 50% off. Not sure how it went for them.
I know Cupcake Girls in Vancouver did a Groupon. My wife grabbed a few and I believe it was for 50% off. Not sure how it went for them.
When was the last time she was interviewed by bbc?
Well if this woman cant make up for this just from the international attention shes gotten, she deserves to fail and fail hard. Fuck must business's would kill for this kind of exposure. I hope she falls and breaks her hip while her business implodes
Groupon typically takes 50% of what it sells for. So she grossed about $42,500 off of it. She had to spend about $20k outsourcing, plus her costs on supplies and labor for whatever she made internally.
While Groupon take advantage of small businesses, if used properly can be a great marketing tool on a local level. It's when you do idiotic things like this lady and not cap your deal that you get yourself in a hole.
If even 5% of the 8500 come back and order another $40 dozen of cupcakes that's an additional $17k. Assuming her product is good and she picks up loyal customers she is definitely going to make out in the long run.
You have to spend money to make money. Short term losses turn into long term gains. Blah, Blah, Blah. How many of you start out testing an offer and are profitable from day one?
wtf is it with people paying 40 bucks for 12 cupcakes? They're the easiest thing in the world to make yourself, and they taste MUCH better.
Never understood the whole cupcakes fashion. A friend of mine had them at a wedding... I was distinctly underwhelmed.
Never understood the whole cupcakes fashion. A friend of mine had them at a wedding... I was distinctly underwhelmed.
If anything she received free publicity on top of groupon, but she sounds like a total moron. When you get a overwhelming response to your product you make it work. I would never go into groupon expecting to push small volume. Their marketing range is massive. When you're I groupon and you're sellin something fr 75% off (also totally idiotic) you're bound to crush. Especially when it comes to delicious treats. Haha.
