Home baking business
By alextrg
@alextrg (86)
Malaysia
December 4, 2008 2:21am CST
I've got a passion for cooking/baking simple home cooked meals.
For now I am taking orders from friends for cakes, simple ones, like chocolate cakes and cheese cakes. But am now considering making it into a business.
I've asked around about how much people charge for this. And the prices really varies. One common factor is most of them already in the business gets business from the upper class people. Whereas far all my orders are from the middle class people.
They really charge a lot, sometimes triple of what I charge.
Any tips on this? I've searched online for this, but so far I can't get any good advice on it.
Thanks
1 person likes this
6 responses
@eric_v_b (261)
• Canada
11 Dec 08
Of course if you sell to the middle class, you have to charge less because they know how to bake cakes it's just that maybe they do not have the time. But since they know how easy it is to bake, they will not want to spend to much.
On the other hand, the upper class does not get its hands dirty hehe! They never really took time to bake, they always buy it from a store. So you can charge them much more because they do not know how much work you put in it.
1 person likes this
@yokhon48 (91)
• Malaysia
4 Dec 08
I share your passion in cooking not so much in baking. It is enterprising for you to venture into business. I got a niece who bakes pretty well, picking all the tips from books. Similarly, she got orders from friends but not frequent, so it is just a hobby. I wish you all the best in the baking business. Good Luck
@coffeebreak (17798)
• United States
28 Dec 08
The thing about the upper class vs. middle class - don't you hate that whe upper is catered to simply cause they have more money!!!? Upper class has the money and the businesses know it. Just cause it is more expensive, doesn't mean it is better.
thing you could consider is to start out with lower prices so as to get your name out there. Yes, more work in the beginning but it can build your customer basis. The more that know you are there, the more opportunity you have to be one of their chosen bakeries.
Or coupons - give a % off coupon with every cake to get either that person to order again or give it to a friend for them to order. Do a "give this to a friend, and if they order a cake, you both get 10% off your next order" or something like that that will make BOTH customers come back to you again.
I am only saying this as a customer. I have no business experience, just am middle class and know prices and these are things that would make me come back to a "mom and pop" type business. These and most likely better service than the bigger business!
I watch the FoodNetwork and all the things they do on there, and quite frankly, the "upper class" stuff they make is so ornate or outrageous or just so "much" that I wouldn't want it anyway, and don't see why anyone else does - it just doesn't fit the bill. I'd much rather have something with feeling and character than something that blurts out to you "Look at me!".
@egdcltd (12059)
•
4 Dec 08
Possibly the biggest problem will be all the rules and regulations you will then need to comply with. In the UK, you'll have to get your kitchen inspected to comply with Health & Safety standards, which are fairly thorough. Plus, anyone who works in the kitchen will also need to pass a basic food hygiene course.
1 person likes this
@AbbeyB (670)
• Spain
10 Jan 09
Cake making is always hard to price as the actual ingredients arent expensive but it is your time that you are charging for! Be reasonable but cover all your costs, do you do it to make money od because you enjoy it? I do it for both reasons and I make somemoney from it.
@crimsonladybug (3112)
• United States
12 Dec 08
Find a place that will let you rent out kitchen space for use in your business. Places to look into that might have a lot of time when they aren't using their kitchens are churches, shelters... There is a lady here who makes and sells jams, jellies, preserves and sauces, mostly around the holidays but some all year, and she rents out the kitchen in the Catholic Mission during their down time (roughly 10-3 during the day) a couple of days a week. That way, she not only doesn't have to maintain her home kitchen to health code standards but she also has a "home business" without making her home feel like the office.
While it's a little difficult to get into, wedding cakes are a huge place to make money in the "baking industry." It depends a lot on your existing experience with cake decorating, but maybe you could contract a decorator, pay them a sort of commission (like 10% of the profit, based on the price/size of the cake) and then just bake the cakes yourself. The average couple in the US today spends upwards of $15,000 on their wedding and a big chunk of that is food, and a big chunk of that is the cake.
As for pricing... People will spend a lot of money on anything if they think it's worth it. Once a month or so I buy a $4 chocolate bar because I like the kind of super rich, super dark chocolate that you don't find in the super market check out lane. But I don't buy very many of the kinds of chocolate bars you find in the super market check out lane either so in my mind it balances out. I think my $4 chocolate bar is worth it and if you are a good baker and market yourself right, people will think you are worth whatever you ask, within reason. Ask the friends you are already making things for; if they didn't know you and found your cakes in the grocery store, how much would they expect to pay for it.