A business based in Sussex is going to have to downsize its premises because it has recently suffered a significant loss because of a deal on Groupon. The company is based in Hove and is called Veg Box UK, they offered a voucher where a box of vegetables could be bought for £18 instead of the initial price of £45. In addition to this discount, Groupon also take a share which is half that of the voucher value.
The demands of the boxes from the company was so high that they had to refund some customers. Groupon is a website that offers discounts to customers on many things from spa treatments to restaurant meals. The website appeals to companies because it allows them to reach a new group of customers.
Daniel Harris from Veg Box commented, “We had about 700 people buy the deal which meant we simply could not afford to deliver all of the goods. We had to refund many people and the impact of this meant we had to move to a smaller location in order to keep our business going. I wouldn’t use Groupon again but I can understand how they would be valuable to a larger company who needs to clear stock.”
A representative from Groupon stated, “It is important that companies who take advantage of our website are able to meet the increased demand that they might experience. If they give us enough information we are able to predict what sort of capacity they are going to need.