Anyone Out There Selling Only Cake Bites?

Business By Artsygurl Updated 30 Dec 2011 , 3:54am by cocobean

Artsygurl Posted 2 Nov 2010 , 3:04am
post #1 of 29

Anyone in the cake central world selling only cake bites? How is that working out for you? Is demand strong enough to sell just cake bites?
Thanks! icon_smile.gif

28 replies
costumeczar Posted 2 Nov 2010 , 3:08am
post #2 of 29

I don't know if she's on Cake Central, but you could get in touch with Keya at Candy Valley Cake Company adn ask her about the "small cake" business. She does cake pops by mailorder, and she's opening up a shop soon. http://www.candyvalleycakecompany.com/

Artsygurl Posted 3 Nov 2010 , 4:53am
post #3 of 29

Thanks costumeczar!

I was hoping more people would have this kind of business (or know of someone) to let me know if it's a worthwhile business venture before I spend a lot of money and go into all of the details of licensing my (PA) kitchen, getting tax stuff cleared away, and getting liability insurance.

Anyone else??

amandda Posted 5 Nov 2010 , 7:33am
post #4 of 29

i know in arizona alot of people realy like them and ask me all the time if i sell them. i do want to sell them but have absolutly no idea what a base price would be for one. like one simple cake pop just dipped and sprinkled???!!!! any answers or suggestions on this?

EatSomeCake Posted 5 Nov 2010 , 10:17pm
post #5 of 29

There's a ton popping up constantly:

Some include:
www.cakepopco.com
www.justabitecakepops.com
www.cakedla.com
www.thecakepop.com
www.candyvalleycakecompany.com
www.thecakeballco.com

And the list goes on and on...
There's more on facebook like:
lolli cakes
sweet bites
confection concoctions
angie's cake balls
heavenly inspirations
cake pop cottage
the cake pop lady
etc. etc.

Annabakescakes Posted 30 Nov 2011 , 6:19am
post #6 of 29

Wow. I looked at some of the prices Nd I am completely shocked! There is no flipping way!!!! Who spends that?

carmijok Posted 30 Nov 2011 , 9:32am
post #7 of 29
Quote:
Originally Posted by Annabakescakes

Wow. I looked at some of the prices Nd I am completely shocked! There is no flipping way!!!! Who spends that?




Long before the cake pop craze, the bakery I worked for sold just the cake balls...and they charged $21 a dozen 2 years ago for just plain cake balls with a squiggle across the top. Decorations would be extra. We had a waiting list for people who wanted them. Why she really didn't expand that area I'll never know.

jason_kraft Posted 30 Nov 2011 , 11:56am
post #8 of 29

Cake pops/cake bites are very labor intensive, so in order to avoid paying yourself a pittance you would need to charge a premium price, our starting price would have been $3 each if we decided to offer that type of product (we didn't). If customers in your area won't pay that much your business probably won't be viable.

esq1031 Posted 30 Nov 2011 , 1:21pm
post #9 of 29

This just confirmed that I am severely undercharging for my cake truffles!

imagenthatnj Posted 30 Nov 2011 , 1:25pm
post #10 of 29

People pay. You just have to find the right people. At the office yesterday for a meeting, we had the cupcakes we always get. Tiny mini things a bit bigger than a quarter. 100 of them in a pizza box for $70. We ordered 3 boxes. I had 12 cupcakes in a flash. Although expensive, little things are appreciated sometimes because you get to eat a bunch of different flavors instead of just one cupcake.

http://www.bakedbymelissa.com/

They're very successful.

esq1031 Posted 3 Dec 2011 , 2:56pm
post #11 of 29

How do u find the "right" people?

jason_kraft Posted 3 Dec 2011 , 3:25pm
post #12 of 29
Quote:
Originally Posted by esq1031

How do u find the "right" people?



By researching local demographics and finding customers (individuals or businesses) who are willing and able to pay your prices. This is an integral part of any business plan.

esq1031 Posted 3 Dec 2011 , 5:08pm
post #13 of 29
Quote:
Originally Posted by jason_kraft

Quote:
Originally Posted by esq1031

How do u find the "right" people?


By researching local demographics and finding customers (individuals or businesses) who are willing and able to pay your prices. This is an integral part of any business plan.




I understand that, thanks, Jason. I just do work for friends and family right now. I live in NY and based on what I know from my "clientele" I can't imagine anyone paying such a high price for these. Starbucks sells theirs for a little over a dollar. I know mine taste better than theirs, but still, $3 a cake ball seems high. I wish I could get that price because honestly, they are time consuming.

lynn780 Posted 3 Dec 2011 , 8:25pm
post #14 of 29

My thought with the cakepops is to use cupcakes at the end of the day, roll into balls, freeze, dip in chocolate/melts, sprinkle or roll in different things. If doing it this way at what point to you put the stick in? The picture for all these different pops really make me want to try them.

scp1127 Posted 6 Dec 2011 , 10:28am
post #15 of 29

You must always find your niche market and market to them. Trying to sell a premium item to the masses is not a good business plan. Believe me, if there are manicured big lawns, pools, luxury cars, private schools, and golf courses in your area, even a small area, you have a market that purchases premium items and even $1000.00 cakes don't get a second thought. A $3 to $5 item doesn't even get a momentary thought on price.

cakeballsofi10 Posted 27 Dec 2011 , 11:14pm
post #16 of 29

I started a home business selling cake balls and have only had 2 clients. I have also gone to a bridal shop in the Galleria in Houston and all the brides there loved them. I showcased 4 flavors and even had one bride email me for pricing. Now granted, the shop is a high end store and the dressed there were not cheap. No response to my email.

I charge $18/doz for the first doz, $16/doz for 2-4 doz and $13/doz for 5+ doz. I will not go lower due to the time and effort put into them. I have a website and have gotten a lot of hits on it.

I have even given some to my husband to take to his office and everyone loved loved loved them and said I should showcase them but nothing. Only one employee ordered from me for Rum Cake Balls and made $100.

So I don't think my pricing is too much. Good luck.

Pyro Posted 28 Dec 2011 , 10:11pm
post #17 of 29
Quote:
Originally Posted by cakeballsofi10

I charge $18/doz for the first doz, $16/doz for 2-4 doz and $13/doz for 5+ doz. I will not go lower due to the time and effort put into them. I have a website and have gotten a lot of hits on it.




Sorry for the off topic. I just wanted to say your price scaling is terrible, you charge a dollar more for 5 dozen instead of 4. 16$ x 4 = 64$ , 13$ x 5 = 65$. Anyways.

I think selling only cape pops can be viable, if you do your market research. Some people only sell cupcakes. It's really a matter of where you plan to do it and if you price yourself accordingly to the area.

cakeballsofi10 Posted 28 Dec 2011 , 10:19pm
post #18 of 29

Pyro, for one thing, you don't have to be so rude. We are here to help, not criticize. Now if you can explain what you mean, I would appreciate it. I don't understand what you mean by the dollar more. Thank you for your post.

jason_kraft Posted 28 Dec 2011 , 10:41pm
post #19 of 29
Quote:
Originally Posted by cakeballsofi10

I don't understand what you mean by the dollar more.



Since you charge $18 for 1 dozen, $16 for 2-4 doz, and $13 for 5+ dozen, an order for 4 dozen would be priced at $64 ($16 * 4), while an order for 5 dozen would $65 ($13 * 5), only a dollar more for the extra dozen.

This type of pricing might make sense if you have a high volume operation (for example, if you make a batch of 1000 cake pops at a time and keep them frozen until someone orders them) but as a small custom order shop you are doing yourself a disservice by giving such steep discounts for relatively small volumes. $1.50 each is already pretty low to begin with, you probably aren't even paying yourself minimum wage at that price, and your low prices might be scaring off customers who are looking for a more premium product.

cakeballsofi10 Posted 28 Dec 2011 , 10:49pm
post #20 of 29

Hi Jason, sorry to seem so stupid but I was thinking of maybe lowering my price to maybe $15/doz and use that as my only price or should I leave it at $18/doz? And why does it seem like a stupid idea to sell balls instead of pops? I offer pops as well but my main product are balls.

And thanks for your post.

jason_kraft Posted 28 Dec 2011 , 10:53pm
post #21 of 29
Quote:
Originally Posted by cakeballsofi10

Hi Jason, sorry to seem so stupid but I was thinking of maybe lowering my price to maybe $15/doz and use that as my only price or should I leave it at $18/doz? And why does it seem like a stupid idea to sell balls instead of pops? I offer pops as well but my main product are balls..



It's not a stupid idea to sell cake balls instead of cake pops (I don't think anyone has said that), you just have to make sure you are pricing them right.

What is your hourly wage and profit at the current $18/doz level? What about at $15/doz?

cakeballsofi10 Posted 29 Dec 2011 , 2:16am
post #22 of 29

Well the problem is I just started in October trying to sell and have only had 3 customers and I made a total of $104. And they requested cake balls, not pops. When I said I was stupid, I meant the pricing and not making the balls. I still want to make mostly balls since they are easier for me. Now as far as pricing, I'm not sure if this is what you mean. But it takes me about 4 1/2 hours to make them from beginning to ending but not sure how to get the profit. Thanks.

jason_kraft Posted 29 Dec 2011 , 2:38am
post #23 of 29
Quote:
Originally Posted by cakeballsofi10

But it takes me about 4 1/2 hours to make them from beginning to ending but not sure how to get the profit. Thanks.



4 1/2 hours to make how many? And how much do the ingredients and packaging cost per dozen?

cakeballsofi10 Posted 29 Dec 2011 , 3:06am
post #24 of 29

For me, one box makes about 45 balls and we figured per ball, it cost me $0.15 per ball.

jason_kraft Posted 29 Dec 2011 , 3:40am
post #25 of 29
Quote:
Originally Posted by cakeballsofi10

For me, one box makes about 45 balls and we figured per ball, it cost me $0.15 per ball.



If we round up to 4 dozen, ingredient costs are $7.20, and we'll add another $3 for packaging to get to $10.20. At your current prices those 4 dozen cake balls would sell for $64, which leaves you with about $54 for overhead, labor, and profit. Assuming about $800/year in overhead (liability insurance, tax prep, business license, general admin, advertising, etc.) and sales of 4 dozen every week you have an overhead contribution of $15 per 4 dozen, which leaves $39 for labor and profit.

Profit margins are typically in the 20% range, but let's adjust that down to 10%, so $6 of the remaining $39 is profit that accrues to the business, leaving $33 to pay your wages. With 4.5 hours in labor you would end up paying yourself $7.30/hour -- essentially minimum wage. Given the previous sales target of 4 dozen/week and the 10% profit margin your business would accrue $312/year. Before taxes.

Dropping to $15/dozen would probably lead to your business taking a loss and you earning less than minimum wage. Increasing the price to $24/dozen would give you an additional $32 per four dozen, allowing you to earn a more respectable wage in the $12/hour range with an additional $13 profit, resulting in the business accruing $988 instead of $312 every year (or $10/hour with $21 additional profit and yearly net earnings of $1404). Of course this is contingent on a sound marketing strategy that targets the right customer base.

cakeballsofi10 Posted 29 Dec 2011 , 5:52am
post #26 of 29

Thanks Jason. I think I'm going to leave it at $18/doz and that will be my price. I would love to charge more, but I don't think anyone here would buy them at a higher price. But I will change the price and see what happens. I'm thinking $20/doz. I don't have overhead and advertising is already paid for, it being my website with Go Daddy which I paid for the year. I don't even have to have a business license. I appreciate your post.

jason_kraft Posted 29 Dec 2011 , 6:20am
post #27 of 29
Quote:
Originally Posted by cakeballsofi10

I don't have overhead and advertising is already paid for, it being my website with Go Daddy which I paid for the year.



You do have overhead, you just don't know it. I doubt that your web site is your only advertising spend...in this thread you mentioned showcasing your products at a bridal shop, the cost of the samples and your time would fall under marketing or business development. Hopefully you are recording all these costs in accounting software, that is another source of overhead costs (either your time setting up the business accounting or the cost of an accountant to do it for you). There are costs associated with registering for a fictitious business name with the county, even if a business license is not required in your area. There's the cost of business liability insurance (if you don't have this coverage you should get it ASAP to protect your assets).

A lot of this will depend on how serious you are about the business...if you're mostly doing it for fun and don't care about making less than a job flipping burgers then you can set prices wherever you want (not being flippant here, some business owners do fall into this category), but if you want to grow your business and draw a decent wage you have to take all of these factors into account (or hire someone to run the business side).

Pyro Posted 30 Dec 2011 , 3:05am
post #28 of 29
Quote:
Originally Posted by cakeballsofi10

Pyro, for one thing, you don't have to be so rude.




Im sorry, I didn't mean to be rude at all. Most of the time im doing other things as I read these boards and I just wanted to throw a quick note in there and it came out a little out of whack. My bad.

What I meant, just like Jason was nice enough to go much more into detail with, is that you should be careful with the scalling of wich you give discounts. I often see people discount on scales like 1-4 items are X price, 5-9 items becomes cheaper and is X price and so on.

Since you discount at very low quantities and your discounts are actually substancial, someone who would order 4 dozen cake balls from you would pay 64$. Where someone who would order 5 dozens would only pay 65$ ( with the prices you mentionned ) wich effectively makes that 5th dozen cost 1$ to the customer. That's why I said the 5th dozen costs only 1$

Like Jason said, if your overhead is calculated on a batch of 1000 of these at a time , then it might make sense but if you bake to order, any savy customer who wants 4 dozens will get that pretty much free fifth dozen if they realise it's just a dollar. And you will never make a profit from that fifth one. So there's really no reason to ever buy 4 dozen.

And again, sorry for sounding rude previously, im a really happy person I just phrase things oddly and straight to the point sometimes I guess.

cocobean Posted 30 Dec 2011 , 3:54am
post #29 of 29

I was just at Sam's Club tonight and saw that they are selling cake bites. They were really nice looking. There was no sign telling the price so I asked the gal in the bakery. She didn't know either, said she didn't know they had any left. Sooo I was wondering if anyone has tried theirs what the price was and if they were good. It seems to me you can never beat Sam's prices and I think their cake usually taste really good.

Also wanted to add that a neighbor of mine gave us some cake bites she had made for Christmas. I think she might have used the new cake bite maker. The cakes were perfectly round balls and were cake only, very light, nothing added. What are people saying about that new machine? Again, they looked really pretty but were not truffle like at all.

Hope this wasn't too off topic.

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