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Old 12-27-2006, 06:41 PM   #11
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Jan - I'm with you ... I would never want to discourage someone from following a dream ... but I would encourage them to learn the ropes from those who have blazed the trail before them.

Quote:
Originally Posted by Jeekinz
I'm not familliar with the legalities of licensing, but you see it all the time on Foodnetwork, right? There's people making cookies or whatever then selling on the internet or locally. This would just be a small "word of mouth" type operation. I mean, I'm not going to put a neon sign over my rose bushes.
Yes - but they don't always explain what someone had to do to move a product they developed at home into a legal business. There is a big difference between a friend, or a friend of a friend, offering to compensate you for making a cake and you offering your services to make cakes.

Martha Stewart started her catering business at home but had to step up to legal compliance as her business grew. Same thing with Paula Dean and the "Bag Lady".
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Old 12-29-2006, 08:41 PM   #12
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Jeekinz - some of us have connections to the food industry in one way or another, or have thought about and investigated it, and therefore tend to think from that end of the business, like - Getting Started in the Specialty Food Business. We're not trying to rain on your parade - perhaps we're just thinking beyond your aspirations and trying to make you into a bigger business than you envision.

Looking at it from the other end ... you might find this article a little more relevant to your OP ... How to Start A Home Bakery of Your Own.

As for pricing .... I don't know your recipe so I had to shop around based on just a standard classic Napoleon .... for one 12x17 inches - I checked 7 bakeries and depending on the bakery the prices ranged from $50 to $125, with the average being in the $65-$70 range. So your price of $75 would not be out of line. FWIW - the low price wasn't a bakery but rather someone who does what you are trying to do ... make some money by custom baking from home ... the high end is a friend who is an Austrian pastry chef who has been in business for about 30 years ... the others were just bakeries picked at random from the phone book.

Good Luck!
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Old 12-29-2006, 09:18 PM   #13
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Most of our grocery stores in town are downsizing their bakery depts. Grocery stores loose about 5 cents on every gallon of milk they sell. And so goes with everything except competitive processed merchandise. Having a bakery brought customers in but it didn't make a profit. People are buying more convenience foods in the deli and the stores are expanding the deli.
The first thing you need to start a business is customers. If you use your own money to start your business, you will manage your expenses very well.
90% of restaurants fail due to over managing their loans.
This is America; how much money can you make on a couple hundred Napoleons? Enough to get in a higher tax bracket!
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Old 12-29-2006, 09:32 PM   #14
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Jeekinz,

I wouldn't want to discourage your dreams but what is the economy like where you live? Can you afford to put alot of your own money into this venture and still live with the stress of failure or success?
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Old 12-29-2006, 09:32 PM   #15
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Price. I am not sure you can do this one a basis of hours and material cost. i think it is a per piece. Most bakeries in the supermarkets around here get about $2.50-$3/piece. If you can't compete with that then maybe this product will not be your niche.
When we have priced caterers, for example, for a cocktail party, they will charge $1.50/piece for a phyllo dough triangle that I know I can make for next to nothing. But they are charging for all the things I just "give".
But the legalities are not to be completely discounted out of hand. Suits can be a real result if something goes wrong. AND the health department takes selling to the public very seriously.
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Old 12-29-2006, 10:59 PM   #16
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Go to local bakeries and get comparative prices. Charge accordingly.

Unless you have a unique product, ask yourself why someone would pay more for your stuff rather than buying from an established bakery down the street.
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