cafe

Source: http://gizmodo.com/5889060/k+cups-not-only-make-bad-coffee-they-make-bad-environments

K-Cups Not Only Make Bad Coffee, They Make Bad EnvironmentsI’m drinking coffee made by a K-Cup machine right now and it sucks. A lot. But alas, I’m too lazy to get a much better cup at the cafe around the corner. That said, after learning that all of those K-Cups are piling up in landfills—and not being recycled—I may have to reconsider.

According to CNBC, the way K-Cups are constructed, they can’t be recycled. Paper and foil are strongly adhered to the plastic capsule making so that sorting facilities can’t separate the materials. So those cups are destined for a single use and nothing more.

So yeah, maybe you hate yourself (like I do), and don’t care what you consume. But maybe you shouldn’t hate the planet more than you hate yourself? [CNBC via Discovery via Treehugger]

Image via Michael Dorausch

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Wednesday, February 29th, 2012 Uncategorized No Comments

Here’s The Math Formula For Structuring A Groupon Deal That Doesn’t Lose Money (GRPN)

Source: http://www.businessinsider.com/heres-the-math-formula-for-structuring-a-groupon-deal-that-doesnt-lose-money-2011-12


groupon cupcake girl

We’ve all heard the nightmare stories about Groupon merchants who lost tons of money because they were suddenly overwhelmed with thousands of customers whom they were forced to serve at a loss: The British bakery that made 102,000 cupcakes. The Irish hairdressers whose customer base now consists entirely of people who only want their hair cut a discount. The Portland cafe that lost $8,000 because the owner failed to cap the number of deals she offered.

It’s not just Groupon, of course. There are loads of other daily deal sites — Living Social, Thrillist, Google Offers, etc — but they all present merchants with the same problem: The conflict between offering below-cost deals to customers in hopes of attracting long-term “regulars” and structuring a deal so that you can still make a profit. The math can be tricky because merchants have to account for two different sets of discounts: The discount to the customer and share of the payment taken by the daily deal site for publicizing the offer.

Now TheDealMix, a site that aggregates daily deals into an impressively complicated map of your neighborhood, has produced an infographic that can help businesses calculate daily deal offers so th! at they won’t accidentally go bankrupt.

And, yes, The DealMix has presented its formulas in the form of cupcakes — particularly useful given the number of bakery-related Groupon disasters that have made the headlines.

The formulas include:

Offer Price – Cost of Goods > $0

Average Customer Spend – Value of Offer + Price > Cost of Goods



See the rest of the story at Business Insider

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Monday, December 12th, 2011 news No Comments

This Bakery Had To Make 102,000 Cupcakes Because Of A Groupon Deal And Lost A Ton Of Money

Source: http://www.businessinsider.com/london-baker-makes-102000-cupcakes-groupon-deal-2011-11


need a cake bakery

A London bakery recently experienced the worst-case scenario of offering a Groupon for a small business, and it cost the owner thousands (via NBC Chicago).

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.

Apparently, people really love getting cupcakes cheap, because she was rushed by throngs of customers in a cupcake frenzy. 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 a ton for a small biz. It wiped out her profits for the year, reports the Daily Mail.

“Without doubt, it was my worst ever business decision,” she told the BBC. “We had thousands of orders pouring in that really we hadn’t expected to have. A much larger company would have difficulty coping.”

This is just the latest in Groupon small business horror stories. A story popped up in September about a Portland cafe losing $8,000 because of a Groupon, which prompted a personal letter from founder and CEO Andrew Mason.

It brings up the always-present question about the daily deals site: does Groupon suck for small businesses?

Well, it looks like most small businesses think so. An overwhelming majority of 70% hate Groupon, if the latest survey from iContact is to be believed.

As for Brown and her bakery, the experience may have cost her 20 grand, but what about all the exposure she’s getting for her store? Great, right? It doesn’t hurt, but it probably wasn’t worth the cost.

Small businesses like this bakery thrive on relationships with their local customers, not crowds of outsiders coming in to snatch up a free lunch.

Getting new customers is great, but in this case, the bakery rewarded the wrong customers. Those 8,500 people that rushed for the Groupon probably won’t be coming back to pay for the same cupcakes at quadruple the price.

Only those the store has nurtured relationships with for a long time (in Brown’s case, 25 years), should be the ones rewarded. They’re the ones that keep coming back for more.

NOW SEE: The 10 Largest Family Businesses In The US >

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Tuesday, November 22nd, 2011 news No Comments

Dr. Augustine Fou is Digital Consigliere to marketing executives, advising them on digital strategy and Unified Marketing(tm). Dr Fou has over 17 years of in-the-trenches, hands-on experience, which enables him to provide objective, in-depth assessments of their current marketing programs and recommendations for improving business impact and ROI using digital insights.

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