Groupon Cupcakes – Groupon brought a cupcake bakery some much-needed business, and then some. Rachel Brown, who runs Need a Cake bakery in Reading, England, said her deal with website nearly ruined her.
Brown told the Telegraph that she was trying to lure new customers when she offered a 75% discount for a dozen cupcakes on the deal site.
The pitch worked a little too well. Brown told the newspaper she was flooded with 8,500 requests, forcing her to hire extra staff and work hours of overtime to try to fill the overwhelming amount of orders for cupcakes.
“We take pride in making cakes of exceptional quality but I had to bring in agency staff on top of my usual staff, who had nowhere near the same skills. I was very worried about standards dropping and hated the thought of letting anybody down,” she said.
She proclaimed the Groupon deal the worst decision she’d ever made. But it’s not clear if the fault lies entirely with the Chicago-based coupon business.
Experts advise businesses to know their limits before signing up for a promotion with a deal site. “You don’t want to oversell on the Groupon deals, if your business cannot meet the needs of customers. This will create a terrible customer experience meaning they will not visit your business again,” RSS Ray advises.
Heather Dickinson, international communications director for Groupon, told the BBC there was no limit to the number of vouchers that could be sold.
“We approach each business with a tailored, individual approach based on the prior history of similar deals,” she said.