Re:Groupon Horror: Bakery must make 102,000 cupcakes
by dusing on Sunday November 27, 2011 @05:58PM
(#3283657)
It looks like they did 75% off of $40 leaving them with just $5 after Groupon's cut. I don't know how that would ever work with all the labor needed to make a good cupcake. They should have stuck with 50% off and a cap on groupons. Poor planning by the business owner.
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Re:Groupon Horror: Bakery must make 102,000 cupcakes
by r00fus on Sunday November 27, 2011 @08:12PM
(#3283993)
I have heard that Groupon's sales folk are incentivized to have merchants not cap their offers, despite how bad it is long-term for both Groupon and the merchant (if the merchant can't time-shift the purchase, say requiring scheduling)... it's a quick win.
This is a logical pressure coming from the rushed IPO and lack of strategic planning for competition.