Who Is My Competition?

Business By CakeMommyTX Updated 17 Nov 2009 , 2:15am by indydebi

CakeMommyTX Posted 11 Nov 2009 , 10:09pm
post #1 of 20

Anyone and everyone who makes a cake to sell (liscensed and unliscensed), or just those who produce the same style and quality of cakes that I do?

19 replies
KHalstead Posted 11 Nov 2009 , 10:20pm
post #2 of 20

I would argue only those who work with the same types of things you do (ie: buttercream, fondant, carved, 3-d cakes, etc.) and of course, if they are able to pull it off with the same quality as yours.

I don't compare my cakes to people locally that only work in bc or ones that don't carve cakes...I'm a different ball game than them because I offer those things, so I set the bar for those things, not them!

__Jamie__ Posted 11 Nov 2009 , 10:37pm
post #3 of 20

Now THIS will be interesting. Awesome topic! I would say for me, the latter of your options.

CakeMommyTX Posted 11 Nov 2009 , 10:52pm
post #4 of 20

So if I'm writing my business plan and I need to list and describe my competition , do I scope out others who do work just like mine, better, worse, cheaper?

What if I can't find anyone locally who I think does what I do?

Is Walmart competition because of low pricing?

Are other local bakeries competition because they have been around for awhile and are well known, even if they don't do custom cakes, just basic sheet cakes, dessert cakes and pies?.

Would a bakery that specializes in tradtionl white on white wedding cakes w/ fresh flowers be my competition if that's not what I do?

Sorry for all the qustions, I just never put much thought into it before and now I'm stumped...

leah_s Posted 11 Nov 2009 , 11:08pm
post #5 of 20

For a biz plan, everyone is your competition. Then there's another section in the plan where you describe how you are different, set yourself apart, fill a different niche market.

The reader (banker?) of the biz plan whats to be assured that you understand the market in general, and have defined your market in particular.

CakeMommyTX Posted 11 Nov 2009 , 11:08pm
post #6 of 20

ok I think I fixed all my spelling errors, or at least the ones I caught.
oh wait I see another one...

Kitagrl Posted 11 Nov 2009 , 11:27pm
post #7 of 20

I think competition is growing.... with the rise of all these cake shows, its not only raised interest in people buying them, but its also helped raise interest of people trying their hand at making them. And many people are surprisingly good at it too!

There are many awesome home decorators around here, to say nothing of the professional cake art bakeries.

KHalstead Posted 12 Nov 2009 , 1:39pm
post #8 of 20

I know from my own experience (I'm a legal home-based business) I live in a small town and there is a lady 10 min. from me that does wedding cakes, and dabbles in fondant (uses wilton), and won't carve a cake. I do wedding cakes, use fondant frequently and am comfortable using it, and often carve cakes. She charges $1.25/serv. for bc I charge $2.25...I don't consider her competition, I also don't consider Wal-Mart my competition because they don't do ANY fondant or carved cakes. I've built a good customer base over the last year that I've been selling to the public (I started out at $1.25/serv.) and have since raised my prices to thin out the number of requests I was receiving!

leah_s Posted 12 Nov 2009 , 2:22pm
post #9 of 20

the purpose of identifying your competition for your own marketing purposes is different from the writing exercise of identifying your competition for a biz plan.

CakeMommyTX Posted 12 Nov 2009 , 2:44pm
post #10 of 20

I'm needing to identify the competition for my biz plan.
Here's what I have so far based on a sample I'm using as a reference.
It's a rough draft so let me know what I need to change.



XXXXX Bakery competes in the Food Services Industry.
In addition to competing with other bakeries, it competes with all restaurants, delis, and supermarkets for a share of its customers food dollar.
XXXXX Bakery is most concerned with competitors who offer unique custom designed cakes for all occasions
XXXXX Bakery has chosen to limit its analysis to other bakeries specializing in custom cakes.

And then after that I list 3 bakeries in my area that I feel are my competition and then detail how I will differ from them (according to the plan I'm following)

I'm also working on a new name, I don't like the one I have, but would it be a bad idea to change?

Mike1394 Posted 12 Nov 2009 , 3:10pm
post #11 of 20
Quote:
Originally Posted by CakeMommyTX


I'm also working on a new name, I don't like the one I have, but would it be a bad idea to change?




I think that's a good idea XXXXX Bakery isn't to catchy. icon_biggrin.gif Hehehehe

Mike

CookieMeister Posted 12 Nov 2009 , 3:46pm
post #12 of 20
Quote:
Originally Posted by Mike1394

Quote:
Originally Posted by CakeMommyTX


I'm also working on a new name, I don't like the one I have, but would it be a bad idea to change?



I think that's a good idea XXXXX Bakery isn't to catchy. icon_biggrin.gif Hehehehe

Mike




Well, it might be, if her niche market was naughty cakes. icon_biggrin.gif

JenniferMI Posted 15 Nov 2009 , 2:26pm
post #13 of 20

I would not look at the grocery stores as my competition... not in the same league. I would look at those who do similar cakes...

Jen icon_smile.gif

11cupcakes Posted 15 Nov 2009 , 9:33pm
post #14 of 20

I would not consider illigal business as my competition.I also would create my portfolio based on customer I wish to have.If you choose to do anything that goes your way than any lisenced home kitchen,grocery store or upscale bakery could be your competition.It's good to have excellent skills, but your customer service means a lot too.

dailey Posted 16 Nov 2009 , 2:59pm
post #15 of 20
Quote:
Originally Posted by JenniferMI

I would not look at the grocery stores as my competition... not in the same league. I would look at those who do similar cakes...

Jen icon_smile.gif




i agree thumbs_up.gif

thecookieladycc Posted 16 Nov 2009 , 3:28pm
post #16 of 20

I too am in the middle of writing my business plan, I was told by the person helping me the I need to put EVERY place that sells what I will be selling, even if the quality isn't the same. So my competition here is Wal Mart, Safeway, and a small bakery in a near by town, even thought what I offer is completely different. But to lenders cake is cake regardless of what goes into it.

Mike1394 Posted 16 Nov 2009 , 3:31pm
post #17 of 20
Quote:
Originally Posted by thecookieladycc

I too am in the middle of writing my business plan, I was told by the person helping me the I need to put EVERY place that sells what I will be selling, even if the quality isn't the same. So my competition here is Wal Mart, Safeway, and a small bakery in a near by town, even thought what I offer is completely different. But to lenders cake is cake regardless of what goes into it.




OK you have direct, and indirect competition. If you are doing wedding cakes then everyone that does WC is you direct competition. Walmart then becomes an indirect competitor.

Mike

thecookieladycc Posted 16 Nov 2009 , 3:34pm
post #18 of 20

The Wal Mart here does wedding cakes... not very good ones, but they do them none the less.

MissRobin Posted 17 Nov 2009 , 1:44am
post #19 of 20

What do you do in a situation where your competition is underpricing you by almost a $1.00 a serving???? I have no intention of coming down on my price, but I live in a small community, and let's face it, people love to get a bargain.!!!!

indydebi Posted 17 Nov 2009 , 2:15am
post #20 of 20

I listed a wide variety of competition. I then addressed either how I would compete with them, or why they weren't really competition. For example, one caterer is REALLY big! I mean, they cater events that have 7000 guests. Nascar and TV networks hire this company. BIG!

Their wedding buffet pricing was better than mine. How would I handle this competition? Easy. Right on their website they said they had a minimum of 200 people during prime wedding season (May to Sept). "This company is not interested in the smaller events, which works out great for us, as we excel at the 50-200 guest events."

The bakery mentioned above that is $1 cheaper: "Based on price, this could be a tough competitor. However, we do completely different styled cakes. While my cakes are more costly, my cakes are also more modern, more stylish, more "Food Network" style of cakes that brides are looking for today."

Something I learned in lots of sales trainings: "Take the reason why they can't and turn it into why they should." Works everytime.

Quote by @%username% on %date%

%body%