Some people see a mild success by offering Groupon deals. Some people lose thousands of dollars and nearly kill their business. Need a Cake in the UK falls into the second category.
Need a Cake bakery owner Rachel Brown decided to put up a 75% discount on a dozen cupcakes on the site, which dropped the price down to $10 from $40.
8,500 people signed up, and her crew of eight had to make 102,000 cupcakes to meet the orders.
Brown lost $3 per batch because she had to hire 25 extra workers to help, and she ended up losing $20,000 because of it, which is a ton for a small biz. It wiped out her profits for the year.
Image from Google Street View