Baker Forced to Make 102,000 Cupcakes for Grouponers

[K1052]

Some dumb business owners think Groupon is a revenue generator instead of a marketing tool then get pissy when it becomes clear they didn't really consider the financial implications of the deal terms. Traditional advertising (radio/newspaper/tv) is still relatively expensive and of rapidly declining utility, we consider this an alternative that directly reaches the demo we want in our stores.

We only use it to get some initial foot traffic (we depend heavily on word of mouth) if we have a location that isn't terribly obvious or in a area where people are not quick to change their habits. From that standpoint we have been more than satisfied with our Groupon deals.

 

[kranky]

Groupon stock takes another big dive today, now 15% under the IPO price.

 

[vi edit]

Groupon stock takes another big dive today, now 15% under the IPO price.

There's no doubt that internet advertising is profitable for the middle man (Google, Groupon, ect). But has there been any real good research into actual return on investment for company paying for the advertising.

Raise of hands for people that have ever bought anything from a pop up ad or banner ad? I know groupon is different, but does it really have enough return partners to continue it's model?

Marketing/advertising has gone rampant on the web to the point of making some sites unusable/readable and I seriously have to question it's overall effectiveness.

 

[Suspicious-Teach8788]

She should just CANCEL.

Why not treat this like the Touchpad Firesale? How many MILLIONS got shafted because their BN.com or Onsale orders got cancelled. Come on. And it's a freaking cupcake.

 

[gorcorps]

Maybe this was covered already, but how can one be "forced" to do ANYTHING in ones own business? All she needed to do was simply say "I'm all sold out today, check back tomorrow!" Right? I mean hiring extra people and struggling through all that was her own decision.

 

[The Boston Dangler]

Maybe this was covered already, but how can one be "forced" to do ANYTHING in ones own business? All she needed to do was simply say "I'm all sold out today, check back tomorrow!" Right? I mean hiring extra people and struggling through all that was her own decision.

assuming this is all legit, it makes her look extremely stupid.

 

[JMapleton]

Yeah but how many repeat customers will she get from this?

Ignorant business people always think short term. In the long run this may have been the best decision of her life.

If I owned a restaurant, I'd give away free meals for the first month, just to get people in the door to try it. If I had good food, I'd have repeat customers for years. There are restaurants I have been going to since I was an infant. That's the power of repeat customers.

 

[Ns1]

There's no doubt that internet advertising is profitable for the middle man (Google, Groupon, ect). But has there been any real good research into actual return on investment for company paying for the advertising.

Raise of hands for people that have ever bought anything from a pop up ad or banner ad? I know groupon is different, but does it really have enough return partners to continue it's model?

Marketing/advertising has gone rampant on the web to the point of making some sites unusable/readable and I seriously have to question it's overall effectiveness.

For me, it would be to get people in the door and write positive reviews on social media sites.

 

[alkemyst]

funny how everyone is looking at this.

Small time business gets the Groupon attention.

They explain how it will build their business.

Person signs on and goes for it, as a baker she probably isn't too technically saavy.

FTMFL: BAKER
FTMFW: GROUPON

Most of the people above laughing at this are probably some of the biggest losers in life as well.