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

socialflowteam:

A full hour before the formal announcement of Bin-Laden’s death, Keith Urbahn posted his speculation on the emergency presidential address. Little did he know that this Tweet would trigger an avalanche of reactions, Retweets and conversations that would beat mainstream media as well as the White…

Now this I ‘like’, big time.