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Old 12-27-2006, 12:50 PM   #1
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Pastry pricing

My wife just got the opportunity to make a dessert for a friends party. She's making a Napoleon, which is truly outrageous. So we started talking about maybe starting a small home based pastry business, but we cant come up with pricing. We thought maybe an hourly rate plus materials or something like that. The Napoleon, which is completely hand made, takes 5 hours to complete. So we figured $10 per hour plus $25 for the ingredients. The pastry is the size of a large cookie sheet when finished.

How far off the norm are we? also, advise would be greatly appreciated.

-J

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Old 12-27-2006, 12:55 PM   #2
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Where do you live? I don't know of one state in the USA that allows people to sell from home kitchens.

You must have many licenses, certificates, inspectiions, insurance.... If you are caught doing this the fines are outrageous and you have to pay for back licenses and taxes. Plus you are shut down, of course.

Sorry. I'm sure others will have more to add.
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Old 12-27-2006, 01:06 PM   #3
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In Maryland, the kitchen must be separate from the house and contain all stainless steel equipment.

You can research the laws in your state pertaining all that is required to set up a commercial kitchen.

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Old 12-27-2006, 01:07 PM   #4
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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.
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Old 12-27-2006, 01:16 PM   #5
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People may have started businesses from home (Paula Deen) but the laws and times have changed.

There is no one in 'heck' who is illegally doing business and shows up on Food Network.

All someone has to do is think they got ill from one of your products, go to a lawyer and that's it.

Edited to add: I used to own a business that I ran from the house (nothing to do with food even) and the paperwork is trememdous to be legal. Now toss food (and people's health) into the mix and the work would probably be doubled, at least.
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Old 12-27-2006, 01:21 PM   #6
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OK, that aside, what would be a good rule of thumb for above average pastries as I explained in the OP?
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Old 12-27-2006, 01:24 PM   #7
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Lol, I have no idea. I was just concerned about the legal aspects for you. Good luck and i'm sure someone will be aable to answer your questions about cost.
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Old 12-27-2006, 01:48 PM   #8
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In addition to the cost of materials and labor, you have to figure in the cost of facilities: kitchen space, stove - gas or electric, lighting, heat, etc. then add in income taxes, RE taxes, state taxes, payroll taxes, license fees. Don't forget insurance. One law suit and you're in the poor house.
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Old 12-27-2006, 02:15 PM   #9
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RE: Price - Call a bakery and ask them if they could make a Napoleon and then give them the details for the one your wife is going to make and see what they would charge.

Like Andy M. said - there is more to the cost to produce it than just the ingredients.

RE: Home Food Business - Check out this book from Jazz Foods for a start on what you need to know. There Federal food laws, State food laws, Local food laws ... insurance, taxes, record keeping ...
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Old 12-27-2006, 02:39 PM   #10
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Here's the book my DIL and her mom purchased. They wanted to do some catering on the weekends but I warned them that after all the licenses and renting a kitchen, they'd be losing money. Plus if the housing area isn't zoned for business - there's a huge problem if someone gets vindictive, knows about your business and calls the county and state.

Barnes*&*Noble.com - Books: How to Start a Home-Based Catering Business, by Denise Vivaldo, Paperback

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