Offered Local Blog

How Not to Run a Daily Deal as a Bakery

Posted by Ed Loessi on November 27, 2011

daily dealsThere is no doubt that people love daily deals but, It’s happened again, another Groupon deal runs amok for a business, highlighted in a Mashable story – Large Groupon Discount Leads to Excessive Cupcake Baking

“Group discounts can be a nice thing for both the seller and the customers, but you have to know your limits. A UK baker learned that the hard way, when she was forced to bake 102,000 cupcakes, after offering a 75% cupcake discount on Groupon.”

OfferedLocal Take:

Given the number of times this has happened, businesses coming out on the short end of the stick in one of their deals, it’s a wonder that Groupon even allows unlimited voucher offers.   The truth is given all of the bad publicity that happens every time one of their customers gets screwed you’d think it would be the first thing they would stop doing, but I guess time will tell.

So, what is the takeaway for businesses?  Well, first off there is nothing wrong with offering daily deals and specials, in fact they are the lifeblood of the location based marketing and social media marketing process for many restaurants, retailers and service providers but you need to adhere to a few key rules in order to have successful discount deals.

1 – Make sure you can fulfill the deals, no matter how large they might be.

2 – Make sure the deal is capable of covering at least your costs, or your costs minus what you might otherwise spend to market the same offer conventionally.

3 – Make sure you can cut off a deal if things get out of control

4 – Make sure you have a direct contact within the deal provider so that you can reach them in case of number 3

If you can adhere to the 4 items above you will certainly keep yourself out of trouble with regards to running a daily deal.

As well, remember that as a business you can create, distribute and manage your own deals, special offers and promotions using social media outlets like Facebook, Twitter and Foursquare.

In these cases you can create an offer and distribute the offer to people that are already familiar with your business and best of all you can keep the profit and customer data.

By correctly combining the concepts of daily deals and social media you can get the best of both worlds and by keeping more control over where those offers end up you can enjoy a more profitable and fair relationship between yourself and your customers.

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