Monday, December 5

102.000 Cupcakes! Small bakery burned by GroupOn

LONDON - a bakery owner was forced to 102.000 muffins, swamped by customers who take their cut-price GroupOn offer, according to reports Tuesday.

Rachel Brown typically offered a 75 percent discount on 12 muffins, will cost $40 (? 26), the BBC reported.

However Brown under - estimated the popularity of the deal and was not to deal with when 8,500 people for $10 (? 6.50) signed bargains.

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Browns need a cake bakery, which bring employs eight staff in reading, UK, temporary agency workers by an agency for work, had to - meet the orders at a cost of $19,500 (? 12,500) erase their profits for the year.

She lost it between $2.90 (? 2.50) and $4.70 (? 3) for each batch sold, the BBC reported.

"Without a doubt, it was my worst ever entrepreneurial decision," she told the BBC. "We had thousands of orders pouring in so far as really we had not expected to have." "A much larger companies would have overcome difficulties."

Chicago-based GroupOn sold Internet coupons for everything from spa treatments for cosmetic surgery.

Company sign up in the hope of getting new customers from the first transaction or additional goods sold to the purchaser during her first visit.

GroupOn was evaluation of the Division to $13 billion, earlier this month to $20 per share.

Brown, the business has been running for 25 years, was quoted in the Daily Telegraph saying: "we are proud to make cakes of exceptional quality but I had my usual employees in contract workers bring had nearly the same capabilities." I was very worried about the falling standards and hated the thought of someone breaking down.

"My bad employees were one of them having to away on all hour slog - came even on 03 because they couldn't ' t for fear of sleep," she told the newspaper. "We always work is still to make, the money lost and will not do this again."

Heather Dickinson, head of international communications for GroupOn, told the BBC, there was no limit to the number of coupons that could be sold.

"We go every company a tailor-made, individual approach based on the history of similar offers,", she said adding that the company "Contact" with need was a cake.

She told later "we are working closely with small business, but ultimately, they know their best companies and what they are able."

She added: "having a national business wanted to run a cake with us, but we advised them in some cities have, so that they themselves too much would not."

© 2011 reprints

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