vgcea Posted 24 Sep 2013 , 12:56am

A

Original message sent by kikiandkyle

I'm also in Texas but I moved here from Illinois where I couldn't even think about baking from home unless it was for a farmers market. I've been giving away cakes while getting ready to start things more professionally, it's just not worth the risk for a couple of dollars profit.

There are so many cheap home bakers here though, I recently left a Facebook group because the constant posts about how they needed to give away their cakes for pennies to get business were driving me crazy.

And I can imagine business is "booming" and they're booked solid. Never mind that they may not be making any profit.

kikiandkyle Posted 24 Sep 2013 , 1:23am

AThere was one from someone who said a dozen cake pops cost them $6 in supplies and took six hours to make. She wanted to reduce her price from $25 to $15, because she wasn't getting any orders. Sorry but I'm not working for $1.50 an hour for anyone.

howsweet Posted 24 Sep 2013 , 1:40am
Quote:
Originally Posted by jason_kraft 

Of course the flip side to making licensing too easy is it erases barriers to entry, so people can set up shop legally without having to stop to think about pricing that makes sense.

Yep, and next time around if there's a movement to require home kitchens to be inspected and licensed here, I will consider supporting it.

Quote:
Originally Posted by kikiandkyle 

I'm also in Texas but I moved here from Illinois where I couldn't even think about baking from home unless it was for a farmers market. I've been giving away cakes while getting ready to start things more professionally, it's just not worth the risk for a couple of dollars profit.

There are so many cheap home bakers here though, I recently left a Facebook group because the constant posts about how they needed to give away their cakes for pennies to get business were driving me crazy.

What a coincidence, same here but it was some time ago. They had this leader person that they all worshiped and she hated my guts. Right after I'd post my price on a cake price question, she'd be sure and post something significantly less. Otherwise she ignored those threads - she was trying to protect her flock from my silly, crazy pricing help.  On the other hand, she'd repeat things I said and take credit - a real piece of work.  As far as I know, I was the only professional in the group. At the end, I was so tired of casting my pearls before, well, not swine, it was more like the unappreciative.

kikiandkyle Posted 24 Sep 2013 , 2:59am

AWe're just too professional :-D

morganchampagne Posted 24 Sep 2013 , 3:11am

AInteresting about this group. I'm currently in one and do get a tad bit annoyed with the rationalizations of "why I charge so low" One lady said "Lower your prices! Making some money is better than making none at all" o_O........huh?

lindseyjhills Posted 24 Sep 2013 , 9:06am

AMy 'favourite' rationale I hear from 'hobby bakers' on these Facebook groups is that professionals keep going on about getting registered (UK) and charging more because they are jealous of the talent and that they are afraid of competition . I've stopped commenting on 'starting a business' questions on these groups, it's pointless. Like talking to a brick wall.

kikiandkyle Posted 24 Sep 2013 , 5:29pm

AMorgan I was in the same group as you for about a week, I couldn't take it anymore.

morganchampagne Posted 24 Sep 2013 , 5:58pm

A

Original message sent by kikiandkyle

Morgan I was in the same group as you for about a week, I couldn't take it anymore.

Lol!!! I knew it

kikiandkyle Posted 24 Sep 2013 , 6:01pm

A

Original message sent by morganchampagne

Lol!!! I knew it

Either that or someone stole your name! :detective:

costumeczar Posted 24 Sep 2013 , 8:12pm

Quote:

Originally Posted by howsweet 
 

 at the state health committee hearing this year and stated that she'd had many complaint calls of people bringing their dogs, and specifically cats, along on deliveries and the law didn't give her the right to do anything about it.

 

Just to get the basics out of the way, I'm against unlicensed bakers. Undercutters, whether licensed or not, drive market prices down and hurt legtitimate and non-legitimate businesses whether they want to admit it or not. And the cottage food laws don't help much either.

 

Now to my real question...Who the heck takes their cat ANYWHERE in the car other than the vet? I would like to see this delivery where the cat is hanging out in the car.

JaeRodriguez Posted 24 Sep 2013 , 8:25pm

Speaking of the cat thing... I was looking through the cake disasters gallery and was pretty shocked at how many "dog got into the cake" disasters there were (I know I know, sometimes those aren't cakes for customers, just for family events)! Even worse- a comment on one of them was someone saying that when she makes cakes for her family, sometimes her dog gets into the icing on the cake and (since it's just for family) she "shhh" scrapes it off and re-ices and serves it. EWWW! 
 

lkern777 Posted 24 Sep 2013 , 8:35pm

I get really annoyed with the unlicensed for the same reasons as everyone else.

 

I have a friend that makes cookies from her home and she is unlicensed. She charges properly in my opinion and she does great work. What irks me is that she is using her "cookie money" to take her family to Disney in a couple of weeks. She doesn't pay any taxes, licensing fees, or anything except ingredients cost while I spent literally thousands of dollars to do things legally. I do not even make the same product as her, so she is not my competition. It just annoys the crap out of me.

cakealicious7 Posted 24 Sep 2013 , 8:37pm

A

Original message sent by JaeRodriguez

Speaking of the cat thing... I was looking through the cake disasters gallery and was pretty shocked at how many "dog got into the cake" disasters there were (I know I know, sometimes those aren't cakes for customers, just for family events)! Even worse- a comment on one of them was someone saying that when she makes cakes for her family, sometimes her dog gets into the icing on the cake and (since it's just for family) she "shhh" scrapes it off and re-ices and serves it. EWWW! 

 

Ewwww!!!! I read on here that a lady made a cake, iced it and left in on the floor to settle the cat got into it and started eating it!!!! The worst part is she iced it again and sold it to a customer!!!!!!

lindseyjhills Posted 24 Sep 2013 , 8:37pm

A

Original message sent by JaeRodriguez

Even worse- a comment on one of them was someone saying that when she makes cakes for her family, sometimes her dog gets into the icing on the cake and (since it's just for family) she "shhh" scrapes it off and re-ices and serves it. EWWW! 

 

*gag* :(

jason_kraft Posted 24 Sep 2013 , 8:42pm

A

Original message sent by lkern777

I get really annoyed with the unlicensed for the same reasons as everyone else.

I have a friend that makes cookies from her home and she is unlicensed. She charges properly in my opinion and she does great work. What irks me is that she is using her "cookie money" to take her family to Disney in a couple of weeks. She doesn't pay any taxes, licensing fees, or anything except ingredients cost while I spent literally thousands of dollars to do things legally. I do not even make the same product as her, so she is not my competition. It just annoys the crap out of me.

If she doesn't pay any taxes and doesn't track income/expenses, this will come back to her in a big way if she is audited by the IRS. The accounting fees alone could be thousands of dollars, not to mention back taxes and penalties.

howsweet Posted 24 Sep 2013 , 8:58pm

Quote:

Originally Posted by costumeczar 
 

Now to my real question...Who the heck takes their cat ANYWHERE in the car other than the vet? I would like to see this delivery where the cat is hanging out in the car.

I know, right?!  No one believed her and she looked like a fool and was the butt of jokes for months after. After reading the other posts on this thread, I'm starting to wonder... I think she was from the county Tyler, Texas is in.

 

Quote:

Originally Posted by lkern777 
 

I get really annoyed with the unlicensed for the same reasons as everyone else.

 

I have a friend that makes cookies from her home and she is unlicensed. She charges properly in my opinion and she does great work. What irks me is that she is using her "cookie money" to take her family to Disney in a couple of weeks. She doesn't pay any taxes, licensing fees, or anything except ingredients cost while I spent literally thousands of dollars to do things legally. I do not even make the same product as her, so she is not my competition. It just annoys the crap out of me.

People who don't pay their taxes are stupid. All it takes is for one annoyed person to turn them in. Maybe she doesn't pay because she thinks she can't if she's illegal, if so perhaps someone should let her know that the IRS doesn't care where she gets her money as long as she reports it.

Quote:

Originally Posted by JaeRodriguez 
 

Speaking of the cat thing... I was looking through the cake disasters gallery and was pretty shocked at how many "dog got into the cake" disasters there were (I know I know, sometimes those aren't cakes for customers, just for family events)! Even worse- a comment on one of them was someone saying that when she makes cakes for her family, sometimes her dog gets into the icing on the cake and (since it's just for family) she "shhh" scrapes it off and re-ices and serves it. EWWW! 
 

 

 

Quote:

Originally Posted by cakealicious7 


Ewwww!!!! I read on here that a lady made a cake, iced it and left in on the floor to settle the cat got into it and started eating it!!!! The worst part is she iced it again and sold it to a customer!!!!!!

Mind boggling.

jason_kraft Posted 24 Sep 2013 , 9:04pm

A

Original message sent by howsweet

People who don't pay their taxes are stupid. All it takes is for one annoyed person to turn them in. Maybe she doesn't pay because she thinks she can't if she's illegal, if so perhaps someone should let her know that the IRS doesn't care where she gets her money as long as she reports it.

A surprising number of people believe that all branches of federal, state, county, and municipal government are connected and share information on a regular basis, so if one govt agency finds out about something they will all magically know.

The reality is that most govt agencies are just as dysfunctional as any other large company, and in most cases you're lucky if information is shared within a single department.

lkern777 Posted 24 Sep 2013 , 9:06pm
Quote:
Originally Posted by jason_kraft 


If she doesn't pay any taxes and doesn't track income/expenses, this will come back to her in a big way if she is audited by the IRS. The accounting fees alone could be thousands of dollars, not to mention back taxes and penalties.

 

She does track everything, but doesn't report it or pay any income taxes. She doesn't charge for or pay sales taxes either. She knows how much trouble she can get in, but chooses to take her chances. She keeps saying, "when I get legal", but she never really makes any moves to make that happen. I know that she had over $3000 in sales last month. That's gross sales, not profit, but still, it adds up.

jason_kraft Posted 24 Sep 2013 , 9:16pm

AIf you have that much information it might be time for Form 3949-A if you get to the point where you no longer want to subsidize her vacations.

http://www.irs.gov/Individuals/How-Do-You-Report-Suspected-Tax-Fraud-Activity%3F

vpenkuhn Posted 24 Sep 2013 , 9:26pm

Quote:

Originally Posted by jason_kraft 


They can save money until they have enough to launch a business the right way.

 

L I K E

kikiandkyle Posted 24 Sep 2013 , 9:54pm

A

Original message sent by lkern777

She does track everything, but doesn't report it or pay any income taxes. She doesn't charge for or pay sales taxes either. She knows how much trouble she can get in, but chooses to take her chances. She keeps saying, "when I get legal", but she never really makes any moves to make that happen. I know that she had over $3000 in sales last month. That's gross sales, not profit, but still, it adds up.

That trip to Disney might be fun now but she'll wish she'd never gone when she's got no money and the Feds are after her. Most unlicensed bakers are turned in by someone they know, and usually for a reason that's got nothing to do with the product they're selling. If she's making that much money she's going to catch somebody's attention sooner or later.

fondant feind Posted 24 Sep 2013 , 10:02pm

AIt's ok to charge a small amount, but if you then work out profits, or would turn out your self worth is £1 an hour. I don't know about you, but I, and my cakes, are worth more than that x x

lkern777 Posted 25 Sep 2013 , 12:13am

Quote:

Originally Posted by kikiandkyle 


That trip to Disney might be fun now but she'll wish she'd never gone when she's got no money and the Feds are after her. Most unlicensed bakers are turned in by someone they know, and usually for a reason that's got nothing to do with the product they're selling. If she's making that much money she's going to catch somebody's attention sooner or later.

 

I agree. Her cookies showed up on the local evening news because the preschool near us gave the weatherman a cookie bouquet as a gift. The governor of TN also received some as a gift.  I told her that she better get legal soon because she is getting a lot of attention.

 

I can't bring myself to turn her in because we are close friends, but that doesn't mean I have to like it. And she knows that. We have been friends for over 7 years, long before she started making cookies. 

 
She can actually make cookies under the CFL in TN if she weren't making so much money. I think the maximum you can make annually is $5K in sales. She surpassed that a long time ago.
maybenot Posted 25 Sep 2013 , 12:13am

Quote:

Originally Posted by MeSasa1978 
 

I hear you!

My situation is difficult -- I'm that baker just starting out. I gave away a LOT of freebies, and I'm still in that spot.

I'm 100% ready to start the application process to be a "real" business, but I'm running into red tape. I contacted my county health department -- I'm in NE Ohio -- and they referred me to a person with a .utah address. I asked THAT individual whether he was the person I needed to contact to obtain a license for Ohio. He replied that he was (go fig) and that he needed more information. I gave him all my info regarding my business, and he hasn't replied. So now I'm back to square one. I, like you, work full time, so doing things during "business hours" usually involves email communications. I'm getting REALLY frustrated!

Not sure whom you originally contacted, but OH is the easiest state in the Union to work in.  You can operate under the Cottage Laws without any licensing [as long as you're not doing perishables] or you can get licensed for $10/yr.  It's handled through the OH Dept. of Agriculture.

 

http://cottagefoods.org/laws/usa/ohio/

 

Type of License: Home Bakery Who Needs This License? Home baking of potentially hazardous baked goods Licensing Period: Valid through September 30 Annual Fee: $10 Requirements: No pets in the home and no carpet in the kitchen Forms Needed: License application is supplied at time of inspection.
Renewals are sent via the Division of Food Safety Submit to: Ohio Dept. of Agriculture
Food Safety
8995 East Main Street
Reynoldsburg, OH 43068
Phone: (614) 728-6250
Email: foodsafety@agri.ohio.gov  

costumeczar Posted 25 Sep 2013 , 1:53am

Quote:

Originally Posted by JaeRodriguez 
 

Speaking of the cat thing... I was looking through the cake disasters gallery and was pretty shocked at how many "dog got into the cake" disasters there were (I know I know, sometimes those aren't cakes for customers, just for family events)! Even worse- a comment on one of them was someone saying that when she makes cakes for her family, sometimes her dog gets into the icing on the cake and (since it's just for family) she "shhh" scrapes it off and re-ices and serves it. EWWW! 
 

 

There was a thread on here once where someone said her chickens got into the house, managed to get up on a table somehow,  and were pecking away at a cake. she said they ate it anyway. The most horrifying part was how the majority of the responses were "chickens are so cute!" and how funny the story was. When someone finally said that wasn't the most sanitary thing to happen she got all offended and said that her family ate it, not anyone else, so it was no big deal.

vgcea Posted 25 Sep 2013 , 3:14am

AWasn't there a thread where the OP started it to discuss one thing and it ended up being about the cat sitting up on the kitchen counter right behind the cake? Yep, I can totally believe that cat delivery story.

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