Joining A Baking Community
If you decide to target a wider audience, you may wish to join a baking community, such as the Home Bakers Club Facebook group. Depending on what the baking community offers, being part of a baking community may help you connect with other bakers and provide access to recipes or events. They may also promote your baked goods, and simplify the process of delivering and selling your baked goods.
Baking communities that help promote and sell your baked goods may have additional requirements for you to meet before they will assist you your business. These requirements can include passing a taste test or obtaining a food hygiene certificate from a certified agency.
Therefore before signing up to join a baking community, check the baking communitys requirements for joining and whether you are willing to fulfil these requirements .
Whip Topping At The Last Minute
Whipped-cream frosting doesnt hold up more than a day or two in the fridge. It becomes weepy and loses its consistency. So if you need to make the cake in advance, dont whip up the topping until just before you serve it. You might even serve up the whipped cream in a nice bowl and let your guests dollop on their own frosting.
How To Approach A Chain Store
Your absolute best bet for securing a deal is an in-person pitch. A great way to do this is to seek out the relevant person in charge of buying at the retailer and contact them directly. Do some research on Google, or scour Linked In to find someone in procurement. These are people you can learn from find out what they look for in a new supplier before you approach them about a product. Establishing a rapport with somebody in the right department can go a long way to securing a pitch.
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Bake It Til You Make It
The work thatâs required to get a home-based baking business off the ground is well worth it. You get to make your own sweets, offer them for sale, and make money in the process. You could combine these efforts with selling coffee online to create a dessert-centric business. Delivering value to buyers through unique and mouth-watering products will foster brand recall, whether you’re selling alcohol online or dry food products.
How Much Money Can You Make Selling Baked Goods
Depending on what your specialty is, you can earn anywhere between $200 and $400 per month or even $800 to $1,200 if you are baking lots of wedding cakes, and even more if you have many clients. Among the things that both my mother-in-law and I talked about as home bakers was the power of word of mouth.
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Be Aware Of The Terms Of A Deal
It can be overwhelmingly exciting to clinch a deal with one of the top dogs in the supermarket domain. Once youre selling in one, this can often lead to contracts with other big supermarket chains, building trust in your brand.
However, your first supermarket may want to sign an exclusivity deal, which would prevent you from selling in any other supermarket. Usually, this lasts for six months, which tends to be a useful period in which you can adapt to the supply pressures of a national chain. That said, be sure to check the terms and make sure you wont have too many restrictions further down the line.
Farmer’s Market Baked Goods Recipes
So, now you may be wondering what you can sell at the farmer’s market? The possibilities are endless! From cookies, to cakes, to pies and breads, the market such a great way to show off your creations. If you are looking for some ideas, check out some of my recipes. I regularly share recipes for items I bake and sell at the farmer’s market in this section of my website.
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Which Shipping Service Is Best For Shipping Baked Goods
The best shipping service for baked goods depends on the volume and type of baked goods youre sending. We explain the benefits of different carriers below:
- USPS – The US Postal Service provides the best rates on small, lightweight packages and usually offers fast delivery timelines.
- UPS – For large and/or heavy shipments, use UPS to get the best rate. Given their expedited shipping times, UPS is also ideal for highly perishable deliveries.
- FedEx – FedEx offers niche shipping services for frozen food and businesses.
Come Up With Suitable Branding
Creating a brand for your home bakery increases business awareness. Consider coming up with unique packaging and logo for your baked goods.
Some coffee shops will not mind stocking your unbranded products. However, reputable will prefer to sell baked goods with recognizable brand names. Branding also helps to market your baked goods to new customers. The coffee shops could become a marketing platform to reach new consumers.
Nicely packaged baked goods may attract potential clients, and you may start receiving new orders from individual customers. Soon new coffee shops and restaurants may start ordering your baked goods.
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Marketing And Advertising Strategies
Before you open your bakery to the public, you need to conduct some marketing and advertising campaigns to get the word out and create buzz. You can break your bakery marketing strategy into five general steps:
Choose Your Baking Niche
While you may be tempted to offer as many items as possible, its better to limit your offerings in the beginning. Focus on one or two items that are your specialty, and make them better than any of your competitors similar offerings.
Finding a niche like gluten-free bagels or vegan cookies, for example allows you to stand out as a specialist and makes it easier to make a name for yourself among a small, dedicated customer group.
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Register For Taxes And Obtain An Ein
All businesses have varying tax, licensing and employer requirements. Learning about these requirements before you start a bakery will help you avoid costly and time-consuming mistakes. Your chosen business entity, as well as some other factors, will affect the business taxes youll be responsible for paying. If you havent already, its a good idea to consult a tax professional to make sure youre aware of your tax responsibility and on track to file the appropriate paperwork on time.
If you plan on hiring employees to help you run your bakery, youll also need to apply for an employer identification number, also known as an EIN or business tax ID number. You can do this through the IRS and this number will be used when filing your businesss income tax return or payroll tax return, as well as when youre opening a business bank account, credit card or filing for a business loan.
Even if you dont need to obtain an EIN sole proprietorships and single-member LLCs without employees are the only businesses that dont there are still benefits of getting an EIN you should consider.
Benefits To Making Baked Goods From Scratch
It seems like no one has time for making baked goods from scratch anymore! As convenient as it seems to purchase some ready-made cookies or a store-bought cake, making baked goods from scratch isnât as time consuming as you would think. There are also numerous health benefits to homemade cookies, cakes, and other sweets. With all the shortcuts and easy recipes, baking doesnât take as long as you would think! If youâre a novice baker and wouldnât think for a second to make your own treats, keep these seven benefits in mind.
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Tips For Shipping Baked Goods For The Holidays
Can You Make Money Baking From Home
Yes, you can make money baking from home–the upside potential is unlimited. Launching your home-based baking business requires significant financial, time, and energy investments, though.
Whether youâre learning how to sell cookies online or another kind of sweet treat, thereâs a lot of work to be done. Obtaining business licensure, buying equipment, and online sales and marketing are all part of making money with baked goods.
You should also learn how to ship cookies because sending food directly to customers is often more difficult than meets the eye. With a clear marketing plan, excellent products, and top-notch customer service, you can make as much money as you want baking from home.
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How Do I Sell Baked Goods To Cafes
Set Up A Business Bank Account
If you’re a sole trader, you have the choice of using your own personal account or opening a separate business bank account for your business. We highly recommend that you choose the latter, as it makes it much easier to work out your cashflow and calculate your tax liability at the end of the year.
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Case Study: Selling Into A Retailer
When Daniel Woolman approached Asda, the high street retailer, to see if it would be interested in his invention, a clip-on deodorising spray which keeps wheelie bins fresh, he didnt even have a finished product to show them.
He only had a single prototype of his product, Binifresh, which had cost him £1,000 to make. The prototype was like gold dust, says Daniel, Whenever anyone asked if they could keep it, I would say no. Nevertheless, the buyer at Asda decided Daniels spray would sell well at a retail price of £14.99 and promptly ordered more than 5,000 of them.
Meetings with John Lewis, Heart of England Fine Foods, Lakeland and Tesco were also fruitful, and they too agreed to stock Binifresh. Daniel has since launched the Minibini, a clip-on spray for kitchen bins, and his business is thriving.
It’s All In The Packaging
What’s the difference between the most scrumptious cakes that earn rave reviews on social media, and those that are just “OK” and get the odd like or retweet? More often than not, it’s simply how they’re presented.
Turn up at your customer’s home with an eye-catching cake box bursting with personality, and your humble birthday cake could well find itself splashed all over social media, with cries of “you must try this cake” acting as ringing endorsements of your culinary prowess. Turn up with the same cake in a tatty old box, on the other hand, and the reaction is likely to be very different. It’s all about perception.
If you lack the necessary skills to craft a memorable brand image for your business, there are numerous ways to connect with talented freelance graphic designers. Online services such as 99designs and Upwork offer an affordable way to collaborate with award-winning logo and packaging designers, while university graduates and art college students are always looking for freelance work.
If you’re struggling to come up with ideas for your packaging, the blog post “50 Deliciously Creative Bakery & Cake Packaging Designs” should get your creative juices flowing.
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Find Your Profit Margins
Once youve figured out the COGS for each of your items, you can add on an additional amount to ensure you make a profit from each sale. Whatever amount you decide, make sure its within reason. For example, if the COGS for your chocolate chip cookies is $1.00, but you add on $8.00, youll be selling a cookie for $9.00, which is quite expensive. You can calculate your profit margin with a profit margin calculator.
Profit margins vary by industry, but generally, a 5% margin is low, a 10% margin is average and a 20% margin is good. The key is to find a balance between the profit that you want to be generating with whats realistic for your customers.
Great For Food Allergies
Is your child lactose intolerant? Or do you have a coworker who is allergic to eggs? While it may have been difficult in the past to buy desserts and other baked goods that taste good and are safe to eat, you can avoid this predicament by making your own desserts. There are plenty of online sites and social media platforms that provide recipes for those with food allergies. I learned through a forum, for instance, that I could substitute olive oil for butter and applesauce for eggs to make egg-free, dairy-free brownies for one of my best friends who has crazy food allergies. Remember that food isnât just about calories or weight management itâs also a celebratory process that everyone likes to participate in regardless of their allergies.
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How And Where Can You Sell
Individuals, under most states rules may usually sell directly to other individuals, not businesses, such as restaurants or grocery stores. A number of states limit the sales of home processed foods to farmers markets, bake sales and charity events. And usually, while you may have a website to promote your products, you may not sell online or across state lines. Indirect Sales are allowed in California, Maine and Ohio. New Hampshire and Pennsylvania allow it indirectly only at farmers markets, and producers’ premises. If you are considering cookies, cakes, or candy sales, see these overviews
Develop A Marketing Strategy
This thought process also needs to go into who you target. Once youre selling to one high-street retailer, youre more likely to attract deals with others, so its crucial to figure out which one is your best bet. Take Candy Kittens, for example a luxury, gourmet, sweet brand, both vegan and gluten-free, broke into the high-street market via premium department stores that resonated with the products fashion- and design-focus. They first got in a foot in the door with Selfridges, which led on to Ocado. The deal with Ocado then gave them the traction to secure contracts with other big high-street retailers and expand their customer base beyond those with a gourmet reputation, and they now stock across the UK in Tesco, Sainsburys, Asda, Morrisons, Boots, and many more.
Make sure you include a sell sheet when you approach a retailer. If you can, its best to send this off with an application before you meet with the buyer in person, to give them time to consider your proposal. A sell-sheet should be a one- or two-page information brochure, detailing:
- The wholesale price and retail price of your product
- Discount tiers for 50, 100 or 500 units for example
- High-quality photographs
- Product information, benefits and USP
- Testimonials from other wholesale customers if you have them
- Rating and reviews from the end consumers
- Patents, certifications or intellectual property rights
- Your contact details and how they can order.
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