Cupcake Calamity

Did you read about the cake baker whose profit for the year has been wiped out – thanks to the popularity of a marketing initiative?

When Rachel Brown – a cake maker of 25 years – signed up to offer a Groupon deal, she probably imagined it would raise her profile and possibly win her some new customers. Well it’s certainly raised her profile – she’s all over the Daily Mail – but it’s nearly ruined her to boot.

http://www.dailymail.co.uk/femail/article-2064208/Cupcake-calamity-Website-discount-deal-leaves-baker-swamped-orders-102-000-cakes-wipes-profits.html?ito=feeds-newsxml

From a PR perspective the coverage she’s achieved is a dream - and had she been running a different, less labour intensive, style of business then the Groupon deal could’ve been a massive marketing success.

My sympathy goes out to her it really does. Businesses are constantly being ‘sold to’ and it’s a challenge for anyone to figure out what’s worth pursing and what’s not.

I regularly review opportunities presented to clients and my advice is to take your time and make sure you know exactly what you’ll get for your money...

All credit to Mrs Brown, she took on extra staff and worked around the clock to fulfil as many orders as possible, determined to keep her reputation intact.  Let's hope some of those customers come back for more.