Groupon gone wrong: UK baker calls using Groupon response "an absolute nightmare" and "worst ever business decision I have made"

Big story making the rounds from the UK about Need a Cake Bakery. From the Daily Mail:

After 25 years in the baking business, Rachel Brown knew her exquisitely decorated cupcakes were popular. She just didn’t realise how popular.

So when she decided to drum up a little extra trade with a discount deal, she bit off more than she could chew.

Swamped by orders, Mrs Brown, who normally makes 100 cupcakes a month, found herself having to bake an astonishing 102,000.

According to Mashable:

“We approach each business with a tailored, individual approach based on the prior history of similar deals,” Groupon’s international communications director Heather Dickinson told the BBC, adding that there was no limit to the number of vouchers that could be sold.

We’ve heard of small businesses having similar experiences before, and many of them aren’t too happy with Groupon. The lesson is clear: Groupon is a business tool like any other. It’s not for everyone, and its use requires careful planning – too large a discount, for example, can have unwanted consequences.