A Berkshire baker claims she has lost her entire year’s profits after posting a deal on money-saving website Groupon.

Rachel Brown, owner of bakery Need a Cake, advertised a 75% discount to the website’s subscribers but underestimated the demands she would receive. Marketing 12 cupcakes at a cost of £6.50 instead of the usual £26, Brown had to cut off the orders at 8,500 requests and ended up losing almost £3 for every batch she sold. 

The entrepreneur told The Telegraph: “As soon as we were making, packaging and sending the cakes out, we were on to the next order. It was non-stop.”

Normally producing around only 100 cupcakes per week, Brown was forced to take on additional staff to fill the orders, resulting in an extra £19,500 in shipping and labour costs.

Reflecting on the discount nightmare, the business owner added it was “without doubt, the worst ever business decision I have made”.

More at: http://www.businesszone.co.uk/topic/business-trends/groupon-deal-wipes-out-cupcake-bakers-profits/38254