I got into the cookie business when I realized the trends coming out of the US for cakes, cupcakes and cookies. I noticed the market and demand for cookies is still not developed well here. Most people prefer cakes and cupcakes. It costs me about $0.51 to make a cookie and prices here range from $1.16 for fondant / RI cookies not wrapped to $2.33US for individually wrapped cookies.
Is it just me or does anyone else feel like their time to make 2 doz cookies, wrapped or not, is just not worth the time.
Luckily it is not a big part of my business.
Where are you? Tell us about the trends where you live.
Im in the Caribbean. We have had an insane growth in the no. of home-based bakers. We don't have cake companies like in the U.S. We have only 1 bread company that has gone into mass producing cakes for birthdays and weddings. They are a huge company that controls the market. After them are home-based people.
There are no laws here to have a cake business from home like Cottage laws so there are no overheads to pay like a commercial store-front that people take into account when costing. I get the impression most of these home bakers are not great in business or accounting because their prices seem only to reflect their cost of goods sold. I know they don't charge for utilies, car maintenance etc.
The company that mass produces buttercream and fondant cakes sells 8" round 3"high buttercream cakes in groceries for about $10US equivalent. They sell A 6-count box of cupcakes in groceries for $3.41US.
I have been concerned about the lack of stringent laws here. Any and everyone can start a cake business from home and prices are not consistent and time is not being rewarded adequately.
Classic market oversaturation. Based on what you've said it does sound like decorated cookies are not worth selling in your area, in the mainstream market at least. If you truly have a premium product and there are upscale residential areas or resorts nearby, you may want to look into deals with high-end venues that sell to tourists.