24 November

Let’s Not Blame Groupon for its Merchants’ Mistakes.

I Found the article, Groupon horror: Bakery must make 102,000 cupcakes, via Washington Post Social Reader app (written about here).

The bakery, based in Woodley, received 8,500 requests for a dozen cupcakes, far above the normally 100 it produces a month. Brown suddenly had to make 102,000 cupcakes.

Brown’s company only employs eight people, and she had to bring in an outside agency to handle the orders. The temporary agency cost her $19,500, effectively wiping out her year’s profits, MSNBC reported.

This is *not* a Groupon horror story. In fact, Groupon did percisely what they are supposed to do: drive immense volume.

Rather, It is a horror story about business mismanagement and the consequences of poor forecasting.

It’s a lesson to be learned for all businesses – although this example demonstrates how small / medium businesses can be more dramatically impacted.

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